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11/30/2017 Fianace Committee Meeting Packet Finance Committee Agenda November 30, 2017 County Manager's Front Conference Room 10:30 a.m. 1. Call to order 2. Approval of Agenda (meeting noticed on November 20, 2017) 3. Approval of Minutes from October 3, 2017 Meeting 4. Discussion of proposals and the Plan of Finance for the 2017 Special Obligation Refunding Note 5. Other Business 6. Public Comment 7. Adjourn— Next Meeting 12/14/17 1 FSO RIOP^ 1 Collier County Government Communication & Customer Relations 3299 Tamiami Trail East, Suite 102 colliergov.net Naples, FL 34112-5746 twitter.com/CollierPlO facebook.com/CollierGov youtube.com/CollierGov November 20, 2017 FOR IMMEDIATE RELEASE NOTICE OF PUBLIC MEETING COLLIER COUNTY FINANCE COMMITTEE COLLIER COUNTY, FLORIDA THURSDAY, NOVEMBER 30,2017 10:30 A.M. Notice is hereby given that the Collier County Finance Committee will meet Thursday,November 30, at 10:30 a.m. in the County Manager's Front Conference Room, second floor, Collier County Government Center, 3299 Tamiami Trail East,Naples, Fla. About the public meeting: Two or more members of the Board of County Commissioners may be present and may participate at the meeting. The subject matter of this meeting may be an item for discussion and action at a future Board of County Commissioners meeting. All interested parties are invited to attend, and to register to speak. All registered public speakers will be limited to three minutes unless permission for additional time is granted by the chairman. Collier County Ordinance No. 2004-05 requires that all lobbyists shall, before engaging in any lobbying activities (including, but not limited to, addressing the Board of County Commissioners, an advisory board or quasi-judicial board), register with the Clerk to the Board at the Board Minutes and Records Department. Anyone who requires an auxiliary aid or service for effective communication, or other reasonable accommodations in order to participate in this proceeding, should contact the Collier County Facilities Management Department located at 3335 Tamiami Trail East,Naples, Florida 34112, or(239) 252-8380 as soon as possible, but no later than 48 hours before the scheduled event. Such reasonable accommodations will be provided at no cost to the individual. For more information, call Mark Isackson at(239) 252-8973. ### DRAFT COLLIER COUNTY FINANCE COMMITTEE MEETING MINUTES October 3, 2017, 9:30 A.M. Board members in attendance: Mark Isackson, Corporate Financial Operations CMO; Crystal Kinzel, Clerk of Courts Finance Director; Joe Bellone, Director of Operations Support-Public Utilities; Gene Shue- Growth Management Operations Support Director. Other attendees: Derek Johnssen, Clerk of Courts Assistant Finance Director; Ed Finn, Senior Budget Analyst OMB. Present by phone: Sergio Masvidal, Nicklas Rocca and Pete Varona from the PFM Group; Steve Miller from Nabors, Giblin & Nickerson. Not present: Jeff Klatzkow, County Attorney; Susan Usher-Senior Budget Analyst, OMB 1. Call to Order: Mark Isackson called the meeting to order at 9:34 a.m. 2. Approval of Agenda: Meeting noticed September 26, 2017. Motion to approve agenda. Joe Bellone seconded. Unanimously approved. 3. Approval of Minutes from May 26, 2017 meeting: Make the following edit per Joe's request: #4(5th sentence) Add "s" to 18 month. Motion to accept minutes with Joe's edit correction. Joe Bellone seconded. Unanimously approved. 4. Plan of Finance—Acquisition of Golden Gate Utility: Finance Committee members discussed the "Plan of Finance" connected with acquisition of the Golden Gate Utility. After discussion, committee members recommended that the Series 2010, Series 2012 and Series 2015 Senior Lien Bonds of the Golden Gate System in the cumulative amount of$34,960,000 be refinanced and restructured to achieve the greatest net present value savings to the water/sewer district as opposed to simply assuming the debt. This net present value savings based upon a planning interest rate of 2.3%would realize net present value interest savings of$3,397,000 over the life of the restructured issue. The specific level of savings will not be known until receipt of the bids. In addition, committee members recommended taking cash from the utility transfer and pay off one Sun Trust loan totaling$2,265,100 and two State Revolving Fund loans in the amount of$1,433,653. 5. Other Business: None. 6. Public Comment: None 8. Adjourn: Meeting adjourned at 10:05 a.m. Motioned by Mark Isackson and seconded by Crystal Kinzel. Unanimously approved. Next meeting TBD. APPROVED FINAL COLLIER COUNTY FINANCE COMMITTEE MEETING MINUTES October 3, 2017, 9:30 A.M. Board members in attendance: Mark Isackson, Corporate Financial Operations CMO; Crystal Kinzel, Clerk of Courts Chief Deputy Clerk; Joe Bellone, Director of Operations Support-Public Utilities; Gene Shue-Growth Management Operations Support Director. Other attendees: Derek Johnssen, Clerk of Courts Assistant Finance Director; Ed Finn, Senior Budget Analyst OMB. Present by phone: Sergio Masvidal, Nicklas Rocca and Pete Varona from the PFM Group; Steve Miller from Nabors, Giblin & Nickerson. Not present: Jeff Klatzkow, County Attorney;Susan Usher-Senior Budget Analyst, OMB 1. Call to Order: Mark Isackson called the meeting to order at 9:34 a.m. 2. Approval of Agenda: Meeting noticed September 26, 2017. Motion to approve agenda. Joe Bellone seconded. Unanimously approved. 3. Approval of Minutes from May 26, 2017 meeting: Make the following edit per Joe's request:#4 (5th sentence) Add "s"to 18 month. Motion to accept minutes with Joe's edit correction. Joe Bellone seconded. Unanimously approved. 4. Plan of Finance—Acquisition of Golden Gate Utility: Finance Committee members discussed the "Plan of Finance" connected with acquisition of the Golden Gate Utility. After discussion, committee members recommended that the Series 2010, Series 2012 and Series 2015 Senior Lien Bonds of the Golden Gate System in the cumulative amount of$34,960,000 be refinanced and restructured to achieve the greatest net present value savings to the water/sewer district as opposed to simply assuming the debt. This net present value savings based upon a planning interest rate of 2.3%would realize net present value interest savings of$3,397,000 over the life of the restructured issue. PFM agreed to issue RFQ and the specific level of savings will not be known until receipt of the bids. In addition, committee members recommended taking cash from the utility transfer and pay off one Sun Trust loan totaling$2,265,100 and two State Revolving Fund loans in the amount of$1,433,653. 5. Other Business: None. 6. Public Comment: None 8. Adjourn: Meeting adjourned at 10:05 a.m. Motioned by Mark Isackson and seconded by Crystal Kinzel. Unanimously approved. Next meeting TBD. Public Funding November 27,2017 Mark Isackson Collier County markisackson@col l iergov.n et Subject: Collier County,Florida Special Obligation Revenue Bond,Series 2017(the"Loan") Dear Mark: This Term Sheet is presented in response to that certain Request for Proposal dated November 13, 2017 ("RFP")that you have presented to Capital One Public Funding,LLC("COPF"). All terms,provisions and covenants set forth in the RFP are incorporated herein except as described below. We are very interested in working with Collier County, Florida ("Borrower") and are pleased to present the following summary terms: Structure Directly purchased Special Obligation Revenue Bond,Series 2017. Estimated Amount $45,000,000 Use of Proceeds Refund 2010 bonds for debt service savings. Security Provisions/Repayment Sources As described in the RFP. Fixed Interest Rate 3.15% Payment Assumptions Payments of principal annually and interest due semi-annually;average life of 10.4 years;final maturity 07/01/34. Loan will be payable in installments on the dates and in the amounts set forth on a payment schedule identifying payment dates,principal, interest and total payment due,which shall be attached to the bond. Call Provisions No call until 07/01/25,then in whole at par on any interest payment date. Tax Treatment Tax-exempt Determination of Taxability COPF shall require an increase in the interest rate in the event the tax-exempt status of the Loan is lost due to a direct act or omission on the part of the Borrower Interest Rate Assumptions The above-quoted interest rate is based upon the assumptions set forth above regarding average life and final maturity. Any changes from the assumptions may require an adjustment to the quoted rate. The rate may also be subject to change if the contemplated Loan is not closed by December 28,2017. Documentation Loan documentation shall be prepared by qualified bond counsel subject to review by COPF and its counsel. Borrower shall provide, at its expense,an opinion of legal counsel (acceptable to COPF)attesting to the legal, valid, and binding nature of the transaction and the tax-exempt nature of the interest component of the Loan payments. Upon selection of COPF, the Borrower shall provide COPF the draft authorizing document for its review and comment. Costs of Issuance The Borrower shall be responsible for normal borrower costs of issuance including a financial advisor, placement agent,and bond counsel. No fees will be due to COPF,which shall be responsible for the costs of its own legal review. Capital te" Public Funding Direct Loan • The Loan shall be directly funded by (and registered in the name of) COPF as a single, fully registered bond and delivered in physical, non-book-entry, certificated form. The Loan shall not be (i) assigned a separate rating by any rating agency; (ii) registered with the Depository Trust Company or any other securities depository;(iii)issued pursuant to any type of official statement,private placement memorandum or other offering document; or(iv) assigned a CUSIP number. The lender certificate attached hereto as Exhibit A will be executed by COPF at closing. Audited Financial Statements Upon request,the Borrower shall send COPF a copy of its audited financial statements within 270 days of the end of the fiscal year. Municipal Advisor Rules As noted, this Term Sheet is submitted in response to your Request for Proposals dated November 13, 2017. The contents of this Term Sheet and any subsequent discussions between us, including any and all information, recommendations, opinions, indicative pricing, quotations and analysis with respect to the Loan, are provided to you in reliance upon the exemption provided for responses to requests for proposals or qualifications under the municipal advisor rules of the Securities and Exchange Commission (Rule 15Bal-1 et seq.). Role of Capital One Public Funding,LLC The Borrower acknowledges and agrees that: (i) the information contained in this Term Sheet is for discussion purposes only and sets forth certain proposed terms and conditions of an arm's-length commercial transaction between the Borrower and COPF and does not constitute advice, an opinion or a recommendation by COPF; (ii)the Borrower will make its own determination regarding whether to enter into the proposed transaction and the terms thereof, and will consult with and rely on the advice of its own financial, accounting, tax, legal and other advisors; (iii) COPF is acting solely for its own account in connection with the proposed transaction, and is not acting as a municipal advisor, financial advisor, agent or fiduciary to the Borrower or any other person or entity(including to any financial advisor or placement agent engaged by the Borrower) and the Borrower, its financial advisor and placement agent are free to retain the services of such advisors (including as it relates to structure, timing, terms and similar matters and compliance with legal requirements applicable to such parties) as it deems necessary or appropriate; (iv) COPF has no fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the Borrower with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto; (v) neither COPF nor any of its affiliates is acting as a broker, dealer, underwriter or placement agent with respect the transactions contemplated hereby; (vi)the only obligations COPF has to the Borrower with respect to the transaction contemplated hereby expressly are set forth in this Term Sheet; and(vii)COPF is not recommending that the Borrower take an action with respect to the transaction contemplated by this Term Sheet. Before taking any action with respect to the Loan, the Borrower should discuss the information contained herein with the Borrower's own legal, accounting,tax, financial and other advisors,as it deems appropriate. If the Borrower would like a municipal advisor in this transaction that has legal fiduciary duties to it, Borrower is free to engage a municipal advisor to serve in that capacity. Other Information To the extent that updated financial and other credit materials have not already been provided to COPF or are not available through public resources, COPF may require and request the following: audited and unaudited financial statements; budgets; calculations of historical and projected debt service coverage; information on outstanding bond issues, lease transactions, and contingent/material liabilities; tax base details; and other reasonable and customary information relevant to the Borrower's credit quality and the source of repayment. Collier County,Florida Page 2 Special Obligation Revenue Bond,Series 2017 November 27,2017 Capitan Public Funding Confidentiality The information contained herein is strictly confidential and is intended for review by the parties, their advisors and legal counsel only and may not be disclosed to any other person or entity, except as required by law or otherwise consented to by COPF. Closing Closing is anticipated to take place on December 28,2017. The funding of the Loan will occur only after, among other things,COPF,the Borrower,and their respective counsels are fully satisfied with the terms of the Loan documents and all of the terms and conditions contained herein and in the Loan documents have been met. Term Sheet Expiration This Term Sheet shall expire if not accepted by the Borrower by December 1, 2017. Once accepted, this Term Sheet shall expire if the transaction has not closed by December 28, 2017,unless extended by COPF at its sole discretion. Subject to Final Credit Approval Specifically, but without limitation, this Term Sheet has not yet received all necessary internal and committee approvals of COPF. Any obligation of COPF to provide financing or otherwise shall arise only upon the execution of final Loan documents signed by authorized signatories of COPF and not from statements(oral or written)made during the course of discussions among the parties(whether or not prior to or after the date hereof). Should the above-stated terms be acceptable to you, a formal decision through COPF's internal credit process will be pursued as quickly as possible Thank you for the opportunity to offer this Term Sheet. Should you have any questions, please do not hesitate to contact me at jaci.bretz(a)capitalone.com or 631-457-9582. Sincerely, ,.).ar42/4;1-4. . •2/ Jacqueline Bretz Vice President Capital One Public Funding,LLC ACCEPTED BY: COLLIER COUNTY,FLORIDA By Name Title cc: Sergio Masvidal/Nicklas Rocca masvidals@,pfm.com roccan(apfm.com Collier County,Florida Page 3 Special Obligation Revenue Bond,Series 2017 November 27,2017 i Pinnacle Public Finance A BankUnited Company November 27,2017 VIA Electronic Mail Mr.Mark Isackson Director of Corporate Financial&Management Services Division Collier County RE: Request for Quotes—Special Obligation Refunding Revenue Bond,Series 2017 Dear Mr. Isackson Pinnacle Public Finance, Inc., a BankUnited Company, is pleased to provide this response to the Collier County Request for Quotes distributed by PFM Financial Advisors LLC., acting as Financial Advisor,to the County. Corporate Overview: In October 2010, BankUnited acquired the municipal finance business from Koch Financial Corporation and now operates it under the name Pinnacle Public Finance,Inc. Pinnacle is headquartered in Scottsdale, Arizona and is a market leader in providing tax-exempt financing directly to its state and local government clients and through its vendor programs and alliances. With more than$6 billion in financing and transactional experience in every state in the U.S., our team has the knowledge and the resources to fund complex programs that require innovative and flexible financing solutions. Since beginning operations as Pinnacle, we have funded more than 1,570 municipal transactions totaling more than $2.45 billion. As Koch Financial Corporation, our group managed a portfolio in excess of$1 billion and 2,600 municipal leases. Given that BankUnited is based in Florida, Pinnacle is strongly committed to meeting the needs of our Florida clients. Members of our team have successfully funded more than 45 transactions totaling nearly $500 million in Florida. Our proposed terms and conditions are as follows: Borrower: Collier County,Florida("Borrower"or"County") Lender: Pinnacle Public Finance,Inc., a BankUnited Company("Lender"or"Pinnacle") Financial Advisor: PFM Financial Advisors LLC("Advisor") Bond Counsel: Nabors,Giblin&Nickerson,PA(`Bond.Counsel") Lender's Counsel: Chapman and Cutler LLP("Lender's Counsel") Issue Type: Municipal loan in the form of a bond(the"Loan"). The registered owner will be Pinnacle Public Finance, Inc. and Pinnacle requests physical delivery of the bond, printed on safety paper, with no CUSIP and no reference to DTC or book- entry only system. Pinnacle prefers the bond be structured as a single term bond with mandatory sinking fund redemptions. Pinnacle Public Finance,Inc. Collier County—Special Obligation Refunding Revenue Bond,Series 2017 November 27,2017 Page 2 of 5 Transaction Amount: Not to exceed$45,000,000 Purpose: The proceeds will be used to refund the County's callable Special Obligation Revenue Bonds, Series 2010 and to pay costs of issuance. Security: The payment of principal and interest for the Loan will be secured by a covenant to budget and appropriate from all legally available Non Ad-Valorem revenues of the County. Term: The Loan will have a final maturity of July 1, 2034 with an average life of approximately 10.4 years. Interest Rate: 3.09% Interest Rate Expiration: The above rate is valid through December 31,2017. Projected Funding Date: It is assumed the Loan will fund on or about December 28,2017. Payment Frequency: Principal will be paid annually each July 1, commencing July 1, 2018. Interest will be paid semi-annually each January 1 and Julyl, commencing July 1,2018. Debt Service Requirements: Please see the attached Preliminary Debt Service Schedules. Prepayment Terms: Prepayment in Whole Beginning July 1, 2018 and ending June 30, 2025, the Loan is subject to prepayment in whole any time at a price equal to 101% of par plus accrued interest. Beginning July 1, 2025 and thereafter, the Loan is subject to prepayment in whole any time at a price equal to par plus accrued interest. Prepayment in Part Beginning July 1, 2018, the Loan is subject to prepayment in part one-time per year on a payment date in a minimum amount of $250,000 and a maximum amount of$4 million at a price equal to par plus a $500 re-booking fee. Prior to closing, the Lender and City will agree to the method of applying the partial prepayment,i.e.pro rata or inverse order of maturity. Documentation: The Lender assumes all financing documentation will be prepared by Bond Counsel in form and content acceptable to the Lender and Lender's Counsel. Further, it is assumed Bond Counsel will provide, at no cost to the. Lender, a validity and tax opinion. This proposal is subject to review and acceptance of all documents by the Lender and Lender's Counsel. Pinnacle Public Finance,Inc. Collier County—Special Obligation Refunding Revenue Bond,Series 2017 November 27,2017 Page 3 of 5 Requested Provisions: The Lender will require a gross up provision in the event the Loan becomes taxable due to actions or omissions of the Borrower. If the Loan becomes taxable the taxable rate of interest will be 4.75% and will be effective as of the date of a final determination of the Internal Revenue Service or a court of competent jurisdiction or an opinion of a nationally recognized bond counsel selected by the Lender. The Lender assumes customary events of default for a transaction of this nature will be included. The Lender requests a default rate of 6% be included in the transaction with the default rate going to 7% if the obligation has become taxable as described above. Subject to negotiation. The Lender assumes an Anti-Dilution/Additional Bonds Test willrequire at least 1.50X coverage. Subject to negotiation. The Lender requires the loan documents make no reference to any Uniform Commercial.Code Section relating to Investment Securities(i.e. UCC Article 8). The Lender will agree to transfer restrictions stated below in Assignment. Reporting: The Lender will request that the Borrower agree to provide its CAFR within 210 days of the close of each fiscal year. Additionally, the Lender will request that the Borrower agree to provide such other financial information as the Lender may reasonably request, including but not limited to, its annual budget for any prior or current fiscal year or subsequent fiscal years.Subject to negotiation. Assignment: It is our present intention to hold the Loan to maturity; however,the Lender will require that it reserves the right to assign, transfer or convey the Loan(or any interest therein or portion thereof)only to any of its affiliates or to banks, insurance companies or similar financial institutions or their affiliates,including participation arrangements with such entities. Fees/Closing Costs: The Lender proposes the inclusion of up to $7,500 for Lender's Counsel in the costs of issuance. The Borrower will be responsible for any fees or expenses with respect to its (i) issuing costs, (ii) legal counsel (iii) Bond Counsel and (iv) title/registration fees,if any. Pre-Close Requirements: The Lender will require a complete executed copy of the transcript by noon the day prior to funding (a scanned copy is acceptable). Ultimately, the Lender will require a complete transcript with original signatures. IRMA Representation: The Lender requests the Borrower provide a letter confirming the Advisor is acting as Independent Registered Municipal Advisor under the SEC Municipal Advisor Rule. A copy of the requested letter is attached to this proposal as Exhibit A. Pinnacle Public Finance,Inc. Collier County-Special Obligation Refunding Revenue Bond,Series 2017 November 27,2017 Page 4 of 5 Pinnacle's Role As Lender: The transaction described in this document is an arm's length, commercial transaction between the Borrower and Pinnacle in which: (a) Pinnacle is acting solely as a principal(i.e., as a lender) and for its own interest; (b)Pinnacle is not acting as a municipal advisor or financial advisor to the Borrower; (c) Pinnacle has no fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the Borrower with respect to this transaction and the discussions, undertakings and procedures leading thereto (irrespective of whether Pinnacle has provided other services or is currently providing other services to the Borrower on other matters); (d)the only obligations Pinnacle has to the Borrower with respect to this transaction are set forth in the definitive transaction agreements between Pinnacle and the Borrower; and (e) Pinnacle is not recommending that the Borrower take an action with respect to the transaction described in this document, and before taking any action with respect to this transaction, the Borrower should discuss the information contained herein with its own legal, accounting, tax, financial and other advisors, as it deems appropriate. Credit Approval: This proposal is subject to final credit approval by Pinnacle's parent, BankUnited. Please feel free to call me at 480.419.3634 with any questions or further clarification. Thank you for the opportunity to present this proposal. Sincerely Blair Swain Senior Vice President,Direct Markets CC: Sergio Masvidal, Public Financial Management,Inc. Nicklas Rocca, Public Financial Management, Inc. Pinnacle Public Finance.Inc. Collier County—Special Obligation Refunding Revenue Bond,Series 2017 November 27,2017 Page 5 of 5 Preliminary Debt Service Schedule 1 Totals; 558,102,791.54 $14,097,791.54 $44,005,000.00 Rate 3.0900% $58,102,791.54 Payment Payment Purchase Outstanding Annual Pmt# Date Amount Interest Principal Price Balance Total 12/28/2017 $44,005,000.00 I 711/2018 S826,208.54 $691,208.54 $135,000.00 $44,308,700.00 $43,870,000.00 $826,208.54 2 1/1/2019 $677,791.50 $677,791.50 $0.00 $44,308,700.00 $43,870,000.00 3 7/1/2019 $942,791.50 $677.791.50 $265,000.00 $44,041,050.00 $43,605,000.00 $1,620,583.00 4 1/1/2020 $673,697.25 $673,697.25 $0.00 $44,041,050.00 $43.605,000,00 5 7/112020 $948,697.25 $673,697.25 $275,000.00 $43,763,300.00 $43,330,000.00 $1,622,394.50 6 1/1/2021 $669,448,50 $669,448.50 $0.00 $43,763,300.00 $43,330,000.00 7 7/1/2021 $3,189,448.50 $669,448.50 $2,520,000.00 $41,218,100.00 $40,810.000.00 $3,858,897.00 8 1/1/2022 $630,514.50 $630,514.50 $0.00 $41,218,100.00 $40,810,000.00 9 7/1/2022 $3,225,514.50 $630,514.50 $2,595,000.00 $38,597,150.00 $38,215,000.00 $3,856,029.00 10 1/1/2023 $590,421.75 $590,421.75 $0.00 $38,597,150.00 $38,215,000.00 11 7,1/2023 $3,270,421.75 $590,421.75 $2,680,000.00 $35,890,350.00 $35,535.000.00 $3,860,843.50 12 1/1/2024 $549,015.75 $549,015.75 $0.00 $35,890,350.00 $35,535,000.00 13 7/1/2024 $3,309,015.75 $549,015.75 $2,760,000.00 S33,102,750.00 $32,775,000.00 $3,858,031.50 14 1/1/2025 $506,373.75 $506,373.75 $0.00 S33,102,750.00 $32,775,000.00 15 7/1/2025 $3,351,373.75 $506,373.75 $2,845,000.00 $29,930,000.00 $29,930,000.00 $3,857,747.50 16 1/1/2026 $462,418.50 $462,418.50 $0.00 $29,930,000.00 $29,930,000.00' 17 7/1/2026 $3,397,418.50 $462.418.50 $2,935.000.00 526,995,000.00 $26,995,000.00 $3,859,837.00 18 1/1/2027 $417,072.75 $417,072.75 $0.00 $26,995,000.00 $26,995,000.00 19 7/1/2027 $3,442,072.75 $417,072.75 $3,025,000.00 $23,970,000.00 $23,970,000.00 $3,859,145.50 20 1/1/2028 $370,336.50 $370,336.50 $0.00 $23,970,000.00 $23,970,000.00 21 7/1/2028 $3,490,336.50 $370,336.50 $3,120,000.00 $20,850,000.00 $20,850,000'.00 $3,860,673.00 22 1/12029 $322,132.50 $322,132.50 $0.00 $20,850,000.00 $20,850.000.00 23 7/1/2029 $3,537,132.50 $322,132.50 $3,215,000.00 , $17,635,000.00 $17,635,000.00 $3,859,265.00 24 1/1/2030 $272,460,75 $272,460.75 $0.00 517.635,000.00 $17,635,000.00 25 7/112030 $3,587,460.75 $272,460.75 $3,315,000.00 S14,320,000.00 $14,320,000.00 $3.859,921.50 26 1/1/2031 $221,244.00 $221244.00 $0.00 $14,320,000.00 $14,320.000.00 27 7/1/2031 $3,636,244.00 $221,244.00 $3,415,000.00 510,905,000.00 $10,905,000.00 $3,857,488.00 28 1/1/2032 $168,482.25 $168,482.25 $0.00 510.905,000.00 $10,905,000.00 29 7!1/2032 $3,693,482.25 $168,482.25 $3,525,00(1.00 $7,380,000.00 $7,380,000.00 $3,861,964.50 30 1/122033 $114,021.00 $114,021.00 $0.00 $7,380,000.00 $7,380,000.00 31 7/1/2033 $3,749,021.00 $114,021.00 $3,635,000.00 $3,745,000.00 $3.745,000.00 $3,863,042.00 32 1/1/2034 $57,860.25 $57,860.25 $0A0 $3,745,000.00 $3,745,000.00 33 7/12034 $3,802.860.25 $57,860.25 $3,745,000.00 $0.00 $0.00 $3.860,720.50 1 EXHIBIT A IRMA REPRESENTATION LETTER [Date] Pinnacle Public Finance, Inc. 8377 E. Hartford Drive, Suite 115 Scottsdale,Arizona 85255 Attention: Blair Swain Re: Independent Registered Municipal Advisor Representation Dear Mr. Swain: We are writing to provide you with certain representations pursuant to Rule 15Bal-1 (the "Municipal Advisor Rule") of the Securities and Exchange Commission (the "SEC") under the Securities Exchange Act of 1934, as amended (the "Act"), regarding our independent registered municipal advisor. Pursuant to paragraph (d)(3)(vi)(B) of the Municipal Advisor Rule, we hereby represent to you that we are represented by, and will rely on the advice of, [name of advisor](the "Advisor")on all matters relating to [name of specific transaction]. We have been advised by the Advisor that: (i) it has registered as a municipal advisor with the SEC and the Municipal Securities Rulemaking Board; and (ii)the following individuals, each of whom has been employed by the Advisor for at least two years prior to the date of this letter, are the Associated Individuals of the Advisor for its representation of us: [names of Advisor officers and employees].. Capitalized terms used and not defined in this letter have the meanings assigned to them in the Act, the Municipal Advisor Rule and the related guidance of the SEC's Office of Municipal Securities. You may rely on this representation letter until such time as you receive notice from us. Sincerely, [NAME OF MUNICIPAL ENTITY] By Its 255 Alhambra Circle 305 448-6992 Suite 404 305 448-7131 fax Coral Gables,FL www.pfm.com 33134 pfm November 27, 2017 Memorandum—Plan of Finance To: Collier County, Florida From: PFM Financial Advisors LLC Re: 2017 Special Obligation Refunding Note—Plan of Finance The purpose of this memorandum is to provide the basis for the recommended plan of finance for Collier County (the "County"), and to summarize the proposals received for the County's Request for Proposals for the 2017 Bank Note. PFM, working alongside County officials, continually evaluates the County's existing debt portfolio for opportunities to reduce debt service costs. One such opportunity is refinancing the outstanding Special Obligation Revenue Bonds, Series 2010 (the"Series 2010 Bonds") in the presently attractive interest rate environment. The total outstanding amount of the Series 2010 Bonds is approximately$41 million maturing in years 2021-2034. The call date of the outstanding Series 2010 Bonds is July 1, 2020 and they are currently allowed to be advance refunded on a tax-exempt basis. However, language in both the House and Senate proposed tax reform bills could eliminate the ability for issuers to execute advance refundings (a refunding more than 90 days from the call date) on a tax-exempt basis. Due to this proposed change in tax law, the County has determined that a Bank Note, as opposed to a public bond offering, would best serve the County to implement the plan of finance in the most time and cost effective manner. This determination is based on the desire to: expedite the refinancing and close before January 1, 2018 (which would allow the financing to be tax-exempt); capture current market conditions as well as lock the rate as soon as possible; minimize the administrative requirements compared to a public offering; and reduce the costs of issuance compared to a public offering. PFM worked with the County to draft the Request for Quote ("RFQ") for the 2017 Bank Note prior to its release. The RFQ was then emailed to a broad pool of financing entities that we know to be active in the municipal space. The size of the loan (up to approximately $45 million) and average life (approximately 10.4 years) are generally consistent with parameters typically seen in bank notes, and such parameters would attract interest from the bank lending community and yield the County with a favorable result. On November 27th,two(2)quotes were submitted. A summary of the proposing firms,along with the key points from each proposal is included as an attachment to this memorandum. After review of the bank offers and discussion among the County's finance team, Pinnacle Public Finance, Inc.'s ("PPF") proposal was considered the most attractive. Based on the 3.09% interest rate and a final maturity of 2034, the County is estimated to achieve an All-In True Interest Cost of 3.11%. As of today we anticipate the refunding to result in approximately$2.67 million (6.5%) Net Present Value Savings. On the following page we have included a summary of the anticipated cash flow savings ($3.4 million) that will result from the refunding of the Series 2010 Bonds (please note these may fluctuate depending on the escrow earning's rate at time of approval). The PPF interest rate is locked through the anticipated closing time for this transaction (expected on or around December 28th). The PPF proposal also provides for future prepayment opportunities of the 2017 Bank Note (1% premium before 2025, and no cost afterwards). Finally, the County's legal team has reviewed the terms in the PPF proposal and, is satisfied they are consistent with the existing terms and covenants in the County's prior bond resolution. November 27, 2017 Page 2 of 2 pfm The schedule below shows the County's expected annual debt service cash flow savings upon completing the 2017 Bank Note. Please feel free to contact us should you have any questions or comments prior to the Commission meeting to approve the transaction. Bond Year Annual Cash Ending Flow Savings 7/1/2018 $104,763 7/1/2019 205,846 7/1/2020 208,880 7/1/2021 207,069 7/1/2022 204,196 7/1/2023 206,827 7/1/2024 208,130 7/1/2025 208,105 7/1/2026 206,707 7/1/2027 205,508 7/1/2028 207,553 7/1/2029 208,972 7/1/2030 209,196 7/1/2031 207,616 7/1/2032 206,176 7/1/2033 204,635 7/1/2034 207,743 Total $3,417,922 P ?N C O 0 Z CU T 0 o y._O n n 2 - 7>N ga m� 4 0N N pa000 m'- ag CO M It DT rsi 0 C mC d' d g mEH oC - d,,b W ) EU3 a t 2• N E W To c o 11 A `"in o u gm __E Daa' cLmE o Cahp yNO J i-,. 80-62‘,12 N VL OpW T < WzN o C (Is § L U1NC Oo L a'o W a) .C. co a25T mA: o Oo)Y O 0 of a m Nmo naEN O X22w2ca 7. ca aV $ O v- 9 O OE aWW` Wmv «°QW2 '<7 ° O adom a L,.,- WN aE 0 � w w ma Wn �m@o x . o> o_..ax8—z dmki aaE u)namDtc - 1 W co W O LW rWE r\W`3:8 t y y�a , a :.. � coE y "mM m £ l ooEW W ? o" m m0] W W c C " I a W)O WNWW.ONy O> E N t N U . Na a N. 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J O N m 1 r pfm SOURCES AND USES OF FUNDS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Dated Date 12/28/2017 Delivery Date 12/28/2017 Sources: Bond Proceeds: Par Amount 43,815,000.00 Other Sources of Funds: Sinking Fund Interest 892,725.31 44,707,725.31 Uses: Refunding Escrow Deposits: Cash Deposit 907,856.90 SLGS Purchases 43,723,131.00 44,630,987.90 Delivery Date Expenses: Cost of Issuance 76,361.25 Other Uses of Funds: Additional Proceeds 376.16 44,707,725.31 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 1 pfm BOND SUMMARY STATISTICS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Dated Date 12/28/2017 Delivery Date 12/28/2017 First Coupon 07/01/2018 Last Maturity 07/01/2034 Arbitrage Yield 3.089977% True Interest Cost(TIC) 3.089977% Net Interest Cost(NIC) 3.090000% All-In TIC 3.110207% Average Coupon 3.090000% Average Life(years) 10.370 Duration of Issue(years) 8.758 Par Amount 43,815,000.00 Bond Proceeds 43,815,000.00 Total Interest 14,039,496.11 Net Interest 14,039,496.11 Total Debt Service 57,854,496.11 Maximum Annual Debt Service 3,847,115.00 Average Annual Debt Service 3,504,563.12 Underwriter's Fees(per$1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price 100.000000 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Bond Component 43,815,000.00 100.000 3.090% 10.370 37,637.45 43,815,000.00 10.370 37,637.45 All-In Arbitrage TIC TIC Yield Par Value 43,815,000.00 43,815,000.00 43,815,000.00 +Accrued Interest +Premium(Discount) -Underwriter's Discount -Cost of Issuance Expense -76,361.25 -Other Amounts Target Value 43,815,000.00 43,738,638.75 43,815,000.00 Target Date 12/28/2017 12/28/2017 12/28/2017 Yield 3.089977% 3.110207% 3.089977% Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 2 '* pfm SUMMARY OF REFUNDING RESULTS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Dated Date 12/28/2017 Delivery Date 12/28/2017 Arbitrage yield 3.089977% Escrow yield 1.798615% Value of Negative Arbitrage 1,321,401.07 Bond Par Amount 43,815,000.00 True Interest Cost 3.089977% Net Interest Cost 3.090000% Average Coupon 3.090000% Average Life 10.370 Par amount of refunded bonds 41,110,000.00 Average coupon of refunded bonds 4.588598% Average life of refunded bonds 10.688 PV of prior debt to 12/28/2017 @ 3.089977% 47,385,693.97 Net PV Savings 2,678,344.82 Percentage savings of refunded bonds 6.515069% Percentage savings of refunding bonds 6.112849% Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 3 • pfm SUMMARY OF BONDS REFUNDED Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Maturity Interest Par Call Call Bond Date Rate Amount Date Price Special Obligation Bonds,Series 2010: SERIALS 07/01/2021 3.375% 2,235,000.00 07/01/2020 100.000 07/01/2022 4.000% 2,310,000.00 07/01/2020 100.000 07/01/2023 4.000% 2,405,000.00 07/01/2020 100.000 07/01/2024 4.000% 2,500,000.00 07/01/2020 100.000 07/01/2025 4.000% 2,600,000.00 07/01/2020 100.000 07/01/2026 4.125% 2,705,000.00 07/01/2020 100.000 07/01/2027 4.125% 2,815,000.00 07/01/2020 100.000 07/01/2028 4.250% 2,930,000.00 07/01/2020 100.000 07/01/2029 4.375% 3,055,000.00 07/01/2020 100.000 07/01/2030 4.500% 3,190,000.00 07/01/2020 100.000 TERM 07/01/2031 5.000% 3,330,000.00 07/01/2020 100.000 07/01/2032 5.000% 3,500,000.00 07/01/2020 100.000 07/01/2033 5.000% 3,675,000.00 07/01/2020 100.000 07/01/2034 5.000% 3,860,000.00 07/01/2020 100.000 41,110,000.00 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 4 • pfm SAVINGS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Present Value Prior Prior Prior Refunding to 12/28/2017 Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.0899770% 07/01/2018 1,815,712.50 892,725.31 922,987.19 818,224.11 104,763.08 103,144.84 07/01/2019 1,815,712.50 1,815,712.50 1,609,866.50 205,846.00 199,978.26 07/01/2020 1,815,712.50 1,815,712.50 1,606,832.50 208,880.00 196,806.14 07/01/2021 4,050,712.50 4,050,712.50 3,843,644.00 207,068.50 189,293.03 07/01/2022 4,050,281.26 4,050,281.26 3,846,085.00 204,196.26 181,089.64 07/01/2023 4,052,881.26 4,052,881.26 3,846,054.00 206,827.26 177,762.49 07/01/2024 4,051,681.26 4,051,681.26 3,843,551.00 208,130.26 173,374.99 07/01/2025 4,051,681.26 4,051,681.26 3,843,576.00 208,105.26 168,027.33 07/01/2026 4,052,681.26 4,052,681.26 3,845,974.50 206,706.76 161,778.28 07/01/2027 4,051,100.00 4,051,100.00 3,845,592.00 205,508.00 155,874.94 07/01/2028 4,049,981.26 4,049,981.26 3,842,428.50 207,552.76 152,520.83 07/01/2029 4,050,456.26 4,050,456.26 3,841,484.00 208,972.26 148,757.27 07/01/2030 4,051,800.00 4,051,800.00 3,842,604.00 209,196.00 144,234.48 07/01/2031 4,048,250.00 4,048,250.00 3,840,634.00 207,616.00 138,622.43 07/01/2032 4,051,750.00 4,051,750.00 3,845,574.00 206,176.00 133,209.20 07/01/2033 4,051,750.00 4,051,750.00 3,847,115.00 204,635.00 127,909.23 07/01/2034 4,053,000.00 4,053,000.00 3,845,257.00 207,743.00 125,585.29 62,165,143.82 892,725.31 61,272,418.51 57,854,496.11 3,417,922.40 2,677,968.66 Savings Summary PV of savings from cash flow 2,677,968.66 Plus:Refunding funds on hand 376.16 Net PV Savings 2,678,344.82 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 5 Pfm BOND PRICING Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Maturity Bond Component Date Amount Rate Yield Price Bond Component: 07/01/2018 130,000 3.090% 3.090% 100.000 07/01/2019 260,000 3.090% 3.090% 100.000 07/01/2020 265,000 3.090% 3.090% 100.000 07/01/2021 2,510,000 3.090% 3.090% 100.000 07/01/2022 2,590,000 3.090% 3.090% 100.000 07/01/2023 2,670,000 3.090% 3.090% 100.000 07/01/2024 2,750,000 3.090% 3.090% 100.000 07/01/2025 2,835,000 3.090% 3.090% 100.000 07/01/2026 2,925,000 3.090% 3.090% 100.000 07/01/2027 3,015,000 3.090% 3.090% 100.000 07/01/2028 3,105,000 3.090% 3.090% 100.000 07/01/2029 3,200,000 3.090% 3.090% 100.000 07/01/2030 3,300,000 3.090% 3.090% 100.000 07/01/2031 3,400,000 3.090% 3.090% 100.000 07/01/2032 3,510,000 3.090% 3.090% 100.000 07/01/2033 3,620,000 3.090% 3.090% 100.000 07/01/2034 3,730,000 3.090% 3.090% 100.000 43,815,000 Dated Date 12/28/2017 Delivery Date 12/28/2017 First Coupon 07/01/2018 Par Amount 43,815,000.00 Original Issue Discount Production 43,815,000.00 100.000000% Underwriter's Discount Purchase Price 43,815,000.00 100.000000% Accrued Interest Net Proceeds 43,815,000.00 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 6 • Pfm BOND DEBT SERVICE Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Period Ending Principal Coupon Interest Debt Service 07/01/2018 130,000 3.090% 688,224.11 818,224.11 07/01/2019 260,000 3.090% 1,349,866.50 1,609,866.50 07/01/2020 265,000 3.090% 1,341,832.50 1,606,832.50 . 07/01/2021 2,510,000 3.090% 1,333,644.00 3,843,644.00 07/01/2022 2,590,000 3.090% 1,256,085.00 3,846,085.00 07/01/2023 2,670,000 3.090% 1,176,054.00 3,846,054.00 07/01/2024 2,750,000 3.090% 1,093,551.00 3,843,551.00 07/01/2025 2,835,000 3.090% 1,008,576.00 3,843,576.00 07/01/2026 2,925,000 3.090% 920,974.50 3,845,974.50 07/01/2027 3,015,000 3.090% 830,592.00 3,845,592.00 07/01/2028 3,105,000 3.090% 737,428.50 3,842,428.50 07/01/2029 3,200,000 3.090% 641,484.00 3,841,484.00 07/01/2030 3,300,000 3.090% 542,604.00 3,842,604.00 07/01/2031 3,400,000 3.090% 440,634.00 3,840,634.00 07/01/2032 3,510,000 3.090% 335,574.00 3,845,574.00 07/01/2033 3,620,000 3.090% 227,115.00 3,847,115.00 07/01/2034 3,730,000 3.090% 115,257.00 3,845,257.00 43,815,000 14,039,496.11 57,854,496.11 • Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 7 Pfm I BOND DEBT SERVICE Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Period Annual Ending Principal Coupon Interest Debt Service Debt Service 07/01/2018 130,000 3.090% 688,224.11 818,224.11 818,224.11 01/01/2019 674,933.25 674,933.25 07/01/2019 260,000 3.090% 674,933.25 934,933.25 1,609,866.50 01/01/2020 670,916.25 670,916.25 07/01/2020 265,000 3.090% 670,916.25 935,916.25 1,606,832.50 01/01/2021 666,822.00 666,822.00 07/01/2021 2,510,000 3.090% 666,822.00 3,176,822.00 3,843,644.00 01/01/2022 628,042.50 628,042.50 07/01/2022 2,590,000 3.090% 628,042.50 3,218,042.50 3,846,085.00 01/01/2023 588,027.00 588,027.00 07/01/2023 2,670,000 3.090% 588,027.00 3,258,027.00 3,846,054.00 01/01/2024 546,775.50 546,775.50 07/01/2024 2,750,000 3.090% 546,775.50 3,296,775.50 3,843,551.00 01/01/2025 504,288.00 504,288.00 07/01/2025 2,835,000 3.090% 504,288.00 3,339,288.00 3,843,576.00 01/01/2026 460,487.25 460,487.25 07/01/2026 2,925,000 3.090% 460,487.25 3,385,487.25 3,845,974.50 01/01/2027 415,296.00 415,296.00 07/01/2027 3,015,000 3.090% 415,296.00 3,430,296.00 3,845,592.00 01/01/2028 368,714.25 368,714.25 07/01/2028 3,105,000 3.090% 368,714.25 3,473,714.25 3,842,428.50 01/01/2029 320,742.00 320,742.00 07/01/2029 3,200,000 3.090% 320,742.00 3,520,742.00 3,841,484.00 01/01/2030 271,302.00 271,302.00 07/01/2030 3,300,000 3.090% 271,302.00 3,571,302.00 3,842,604.00 01/01/2031 220,317.00 220,317.00 07/01/2031 3,400,000 3.090% 220,317.00 3,620,317.00 3,840,634.00 01/01/2032 167,787.00 167,787.00 07/01/2032 3,510,000 3.090% 167,787.00 3,677,787.00 3,845,574.00 01/01/2033 113,557.50 113,557.50 07/01/2033 3,620,000 3.090% 113,557.50 3,733,557.50 3,847,115.00 01/01/2034 57,628.50 57,628.50 07/01/2034 3,730,000 3.090% 57,628.50 3,787,628.50 3,845,257.00 43,815,000 14,039,496.11 57,854,496.11 57,854,496.11 I Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 8 S pfm ESCROW REQUIREMENTS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Period Principal Ending Interest Redeemed Total 01/01/2018 907,856.25 907,856.25 07/01/2018 907,856.25 907,856.25 01/01/2019 907,856.25 907,856.25 07/01/2019 907,856.25 907,856.25 01/01/2020 907,856.25 907,856.25 07/01/2020 907,856.25 41,110,000.00 42,017,856.25 5,447,137.50 41,110,000.00 46,557,137.50 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 9 pfm ESCROW DESCRIPTIONS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Dec 28,2017: SLGS Certificate 07/01/2018 07/01/2018 507,717 1.440% 1.440% SLGS Note 01/01/2019 07/01/2018 519,858 1.610% 1.610% SLGS Note 07/01/2019 07/01/2018 524,043 1.680% 1.680% SLGS Note 01/01/2020 07/01/2018 528,445 1.750% 1.750% SLGS Note 07/01/2020 07/01/2018 41,643,068 1.800% 1.800% 43,723,131 SLGS Summary SLGS Rates File 27NOV17 Total Certificates of Indebtedness 507,717.00 Total Notes 43,215,414.00 Total original SLGS 43,723,131.00 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 10 • PfM ESCROW COST Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Type of Maturity Par Total Security Date Amount Rate Cost SLGS 07/01/2018 507,717 1.440% 507,717.00 SLGS 01/01/2019 519,858 1.610% 519,858.00 SLGS 07/01/2019 524,043 1.680% 524,043.00 SLGS 01/01/2020 528,445 1.750% 528,445.00 SLGS 07/01/2020 41,643,068 1.800% 41,643,068.00 43,723,131 43,723,131.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost 12/28/2017 43,723,131 907,856.90 44,630,987.90 43,723,131 907,856.90 44,630,987.90 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 11 • Pfm ESCROW CASH FLOW Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Net Escrow Date Principal Interest Receipts 07/01/2018 507,717.00 400,138.71 907,855.71 01/01/2019 519,858.00 387,998.32 907,856.32 07/01/2019 524,043.00 383,813.46 907,856.46 01/01/2020 528,445.00 379,411.50 907,856.50 07/01/2020 41,643,068.00 374,787.61 42,017,855.61 43,723,131.00 1,926,149.60 45,649,280.60 Escrow Cost Summary Purchase date 12/28/2017 Purchase cost of securities 43,723,131.00 Note: *Preliminary Numbers for discussion purposes only. 1 Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 12 • pfm ESCROW SUFFICIENCY Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 12/28/2017 907,856.90 907,856.90 907,856.90 01/01/2018 907,856.25 -907,856.25 0.65 07/01/2018 907,856.25 907,855.71 -0.54 0.11 01/01/2019 907,856.25 907,856.32 0.07 0.18 07/01/2019 907,856.25 907,856.46 0.21 0.39 01/01/2020 907,856.25 907,856.50 0.25 0.64 07/01/2020 42,017,856.25 42,017,855.61 -0.64 46,557,137.50 46,557,137.50 0.00 Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 13 SPfm ESCROW STATISTICS Collier County,Florida Special Obligation Refunding Revenue Note,Series 2017 PRELIMINARY NUMBERS (Pinnacle Bank Loan 3.09%) Modified Yield to Yield to Perfect Value of Total Duration Receipt Disbursement Escrow Negative Cost of Escrow' Escrow Cost (years) Date Date Cost Arbitrage Dead Time SFI 892,725.31 892,497.22 228.09 BP 43,738,262.59 2.385 1.798615% 1.798615% 42,416,857.62 1,321,401.07 . 3.90 44,630,987.90 43,309,354.84 1,321,401.07 231.99 Delivery date 12/28/2017 Arbitrage yield 3.089977% Note: *Preliminary Numbers for discussion purposes only. Nov 27,2017 12:09 pm Prepared by Public Financial Management,Inc. Page 14