Public Resources Advisory Group Presentation to: Proposal to Serve - PowerPoint PPT Presentation

Public Resources Advisory Group Presentation to: Proposal to Serve Broward County As Financial Advisor February 26, 2019

PRAG – The Firm  Established in 1985 National Firm,  National perspective; lo cal knowledge and experience Local Knowledge  Ranked among the top 3 national municipal advisory firms in new issue volume for over 20 years; #2 in 2018  Sole business focus is municipal financial advice  Not engaged in underwriting, trading, marketing, or Independent investment management  Unique market position and access  Skilled and experienced municipal finance professionals Full Service  Analytical Strength Professionals  Credit and Markets Expertise  Full service Florida office  Unblemished integrity Long-standing  Trusted advisor relationships Relationships  Major issuers across Florida and the United States 2

PRAG – Broward’s Florida Team Name and Title Experience Professional Roles Education/Certification Marianne Edmonds Public Finance  Municipal Advisor  MBA, The Wharton School Senior Managing  Investment Banker  BA, Northwestern University 36 years Director  Educator  Series 50 (Municipal Advisor Rep.) Wendell Gaertner Public Finance  Municipal Advisor  MBA, Stetson University Senior Managing  Investment Banker  BS (General Honors), University of 29 years Director  P3 Advisor Miami  Commercial Banker  Series 50 (Municipal Advisor Rep.) Molly Clark Public Finance  Municipal Advisor  BA, Carleton College Managing Director  Investment Banker  Series 50 (Municipal Advisor Rep.) 17 years  Corporate Trust Analyst Natalie Sidor Public Finance  Municipal Advisor  MBA, The Wharton School Managing Director  Investment Banker  BS, University of Tampa 15 years  Real Estate  Series 50 (Municipal Advisor Rep.) Development Mickey Johnston Public Finance  Municipal Advisor  BBA, James Madison University Vice President  Financial Analyst  Series 50 (Municipal Advisor Rep.) 11 years  Private Equity Analyst 3

PRAG – Broward’s National Support Team Name and Title Experience Professional Roles Education/Certification Steven Peyser Public Finance  Municipal Advisor  MBA, The Wharton School President  BA with Distinction, Cornell University 35 years  Series 50 (Municipal Advisor Rep.)  Series 65 (Investment Advisor Rep.) Monika Conley Public Finance  Municipal Advisor  Ph.D., New York University Senior Managing  MBA, Columbia University 26 years Director  BS, MS, Central School of Planning & Statistics, Warsaw, Poland  Series 50 (Municipal Advisor Rep.) Thomas Huestis Public Finance  Municipal Advisor  MBA, Carnegie Mellon University Senior Managing  Issuer  BA, Franklin & Marshall College 29 years Director  Series 50 (Municipal Advisor Rep.)  Series 65 (Investment Adviser Rep.) Janet Lee Public Finance  Municipal Advisor  MBA, New York University Senior Managing  Rating Analyst  BA, Cornell University 28 years Director  Issuer  Series 50 (Municipal Advisor Rep.) Daniel Forman Public Finance  Municipal Advisor  MS, Baruch College Managing Director  Financial Engineer  BA, Swarthmore College 6 years  Research Associate  Series 50 (Municipal Advisor Rep.)  Series 65 (Investment Advisor Rep.) 4

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Broward County’s Debt Existing Credits PRAG’s Relevant Experience #1 Financial Advisor – General Purpose Bonds (2018) General Obligation #1 Financial Advisor – Competitive Sales (2018) Special Obligation • Advisor for sports facility financings for NHL, MLB, NFL and (Arena/Courthouse) Spring Training facilities across the Country • Aviation Advisor to Los Angeles World Airports for over two decades • Advisor to Port of Long Beach Port Everglades • Prior Experience with PortMiami • Advisor to the Largest Utility in the Southeast (Miami-Dade) Water and Wastewater • Advisor to the Largest Utility in the Country (LADWAP) New/Potential Credits PRAG’s Relevant Experience #1 Financial Advisor – Taxable Issues (2018) Convention Center • Advisor to Georgia World Congress Center Authority Hotel Expansion and Headquarters • Advisor to Hudson Yards Development Corporation Hotel • Advisor to New York Convention Center Development Corp. #3 Financial Advisor – Transportation (2018) • Transportation Advisor to Largest Transit Agency in the Country (MTA) • Advisor for other Florida transportation surtax programs 5

PRAG’s Approach  Alternatives and Options Strategic Planning  Analysis and Modeling  Structure and Timing Implementation  Credit  Market Conditions  Debt Monitoring On-Going Financial  Market Updates Managemen t  Special Projects 6

Broward County Examples  Hotel Ownership Model  Identified Flow of Funds Strategic Planning  Hotel Financing Options  Water and Wastewater Credit Analysis  Refunding Opportunities Implementation  Two Upgrades / $20 million NPV Savings  Transportation Funding Analysis On-Going Financial  Refunding Analyses Management  Impact of Tax Law Changes 7

Proposal Summary Senior Level Service with a Team Approach Direct and Applicable Experience Quantitative and Analytical Expertise Credit Expertise Market Presence and Information Commitment to Service 8

Appendix  Debt and Capital Needs 10  PRAG’s Engagements with Broward County 11  Hotel Ownership Model Input Page Sample 12  Hotel Flow of Funds 13  Water and Wastewater S&P Upgrade 14  Water and Wastewater Moody’s Upgrade 15  Water and Wastewater Refunding Savings 16  Call Option Analysis 17 9

Broward County – Debt and Capital Needs Credit Ratings Security Outstanding FY19-23 Relevant Debt 1 Capital Needs 2 Type Moody's S&P Fitch Source Experience Governmental Activities (in $000s) (in $000s) #1 Financial Advisor - General Purpose Bonds (2018) General Obligations Aaa AAA AAA Ad Valorem Taxes $ 155,245 $ 450,231 #1 Financial Advisor - Competitive Sales (2018) Special Obligations - Professional Sports TDT; Sales Tax Advisor for sports facilities financing for NHL,MLB, NFL and Spring Aa2 AA- AA+ $ 93,970 $ 46,472 Franchise Facility Rebate; County funds Training facilities across the Country (Arena) Other Special Obligations Extensive Florida General Government Experience; Aa2 AA+ AA+ Half-Cent Sales Tax $ 187,920 $ - - Courthouse Project Half Cent Sales Tax projects for Hillsborough and Escambia Counties Convention Center Tourist Development #1 Financial Advisor - Taxable Issues (2018) TBD Expansion Taxes Advisor to Georgia World Congress Center Authority Hotel Advisor to Hudson Yards Development Corporation Headquarters Hotel Hotel Revenues/CBA TBD Advisor to New York Convention Center Development Corp. Local Option Gas #3 Financial Advisor - Transportation (2018) Tax, Constitutional Advisor to Largest Transit Agency in the Country (MTA) Transportation $ - $ 584, 225 Tax, Penny for Advisor for other Florida transportation surtax programs: Transportation Hillsborough County, HART, Manatee County Business-Type Activities Net Revenues of the Aviation A1 A+ A+ $ 2,027,095 $ 885,659 Advisor to Los Angeles World Airports for over two decades Airport System Net Revenues of Port Advisor to Port of Long Beach Port Everglades A1 A A $ 169,480 $ 817,187 Facilities Prior Experience with PortMiami Net Revenues of the Advisor to Largest Utility in the Southeast (Miami-Dade) Water and Wastewater Aa1 AA+ AA+ $ 440,855 $ 380,831 Water/Sewer Utility Advisor to Largest Utility in the Country (LADWAP) Grand Total $ 3,074,565 $ 3, 164,605 1 Estimated outstanding debt balances as of February 1, 2019 2 Total appropriations per Broward County FY2019 Capital Program 10