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HomeMy WebLinkAboutRefunding Bond STATE OF NEW YORK) SS: COUNTY OF SUFFOLK) ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold,New York being duly sworn, says that on the 14th day of Julv , 2016, she affixed a notice of which the annexed printed notice is a true copy, in a proper and substantial manner, in a most public place in the Town of Southold, Suffolk County,New York, to wit: Town Clerk's,Bulletin Board, 53095 Main Road, Southold,New York. 2016 Refunding Bond � � E abeth A. evi�le Southold Town Clerk Sworn before me this 14th day of Jul , 2016. 1 otary Public LYNDA M. RUDDER Notary Public, State of New Yorit No.01 RU6020932 Gtualified in Suffoik County Commission Expires March 8,20� o���v�Foe�-�,oG ELIZABET�I A.NEVILL�,IVIMC �,�. y Town Hall,53095 Mam Road �OWN CI,�I�K � � P.O.Box 1179 y � Southold,New York 11971 REGISTRAR OF VITAL STATISTICS p � .� Fax(631)765-6145 MARRIAGE OFFICER � � RECORDS MANAGEMENT OFFICER �A� �`�O Telephone(631)765-1800 � www.southoldtownny.gov FREEDOM OF INFORMATION OFFICER O�'FICE O�T�tYE TOV6'N CL]E1�K TOWN OF SOUTHOLD August 26, 2016 Town of Southold,New York ` ° �_y '-� � � �r C u , _ Refunding Serial Bonds-2016 �, � ����4���6��2 U S �Our File Designation: (2615/40872� --- - - Mr. Robert P. Smith Hawkins, Delafield & Wood, LLP 28 Liberty Street New York, NY 10005 � Dear Mr. Smith: Enclosed find the following documents related to the above referenced bond. 1. Certified resolution adopting the Bond 2. Extract of Minutes , , 3. Certification of Extract of Minutes � 4. Copy of the Notice that appeared in the Suffolk Times on July 21, 2016 5. Affidavit of Posting 6. Affidavit of Publication 7. Estoppel Certificate - Please do not hesitate to call me if you require anything else for your records at this time. � Very truly your �� 1+�0 . Lynda M Rudder Deputy Town Clerk Encs Cc: Town Attorney ESTOPPEL CERTIFICATE I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the County of Suffolk,New York(the "Town"), HEREBY CERTIFY as follows: That a resolution of the Town Board of said Town entitled: "REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS 1N THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO," was adopted on July 12, 2016, and such resolution contained an estoppel clause as permitted by Section 80.00 of the Local Finance Law and a notice setting forth substantially the statements referred to in Section 81.00 of the Local Finance Law, together with a summary of such resolution, was duly published as referred to in said Section 81.00 of the Local Finance Law. That to the best of my k.nowledge, no action, suit or proceeding contesting the validity of the obligations authorized by such resolution was commenced within twenty days from the date of publication of such notice. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said Town this 12th day of August, 2016. . Elizabeth A.Neville, Town Clerk Town of Southold , - #12880 STATE OF NEW YORK) ) SS: COUNTY OF SUFFOLK) Karen Kine of Mattituck, in said county, being duly sworn, says that she is Principal Clerk of THE SUFFOLK TIMES, a weekly newspaper, published at Mattituck, in the Town of Southold, County of Suffolk and State of New York, and that the Notice of which the annexed is a printed copy, has been regularly published in said Newspaper once each week for 1 week(s), successfully commencing on the 21 St day of July, 2016. , l.c.t-e�1 �,(��l�/ Principal Clerk Sworn to before me this day of 016. TINA VOLINSKI NOTARY PUBLIC-STATE OF NEW YORK No. O1 VOd105050 Qucllfled In Suftolk County _ _ My�6Riffi15el�n�xqt�es Febrdory 28,2020 for wluch the Town of Soutliold,in the"'""APPROPRIATION,AND MAKING , � County of Suffolk,New York,is not autho- CERTAIN OTHER DETERMINA- � rized to expend money or if the provisions � TIONS RELATTVETHERETO � � Y of law which should have been compLed The ob�ect or purpose is to refund all or r ! with as of the date of publication of this No- a portion of certain outstanding bonds of ` i tice were not substantially complied with, the Town issued in 2008,2009 and 2011 for ' and an action,suit or proceedu�g contesting various purposes � � such validity is commenced vv�thin twenty ` , The periods,of probable usefulness 6 - � days after the publication of this Notice,or of the objects or purposes for which the ; f such obliganons were authorized in viola- bonds to be refunded were issued consist `• rion of the provisions of the conshtution. of vanous periods rangmg from 5,years ' DATED:July 12,2016 .� � _ to 30 yeais,cotnniencing on the date of• ' Southold,New York original issuance of the first bonds or bond p BY ORDER OFTHE anhcipahon notes issued for the respec- 0 TOWN BOARD hve objects or purposes for which the out- OFTHE TOWN OF SOUTfIOLD standing bonds were issued. � f ELzabethA.Neville 'Ihe maximum amount of obligations ; � Town Clerk authorized to be issued is$23,000,000. D - REFCJNDING BONb RESOLUTION A complete copy of the Bond Resolu- OFTHETOWN OF SOLIT'HOLD, �tion summarized,above shall be available- NEW YORK,ADOPTED JULY 12, for public inspection during normal busi- , 2016,ALITHORIZING TF3E REFUND-- ness hours at the off'ice of the Town Clerk,, , ING OF CERTAIN OLTTSTAND- Town Hall,53095 Main Road,Southold, � - ING SERIAL BONDS OF SAID New York. � � , TOWN,STATING THE PLAN OF �12880-1T 7/21 .�_ _ __ .. LEGALNOTICE REFUNDING,APPROPRIATING I The resolution,a summary of which u ANAMOLTNTNOTTO EXCEED � ,,published herewith,has been adopted on $23,(�0,000 FOR SUCH PURPOSE, �;July 12,2016 and the validity of the obliga- AUTHORIZING TI�ISSUANCE�OF - ;hons authorized by such resolution may be - REFUNDING BONDS INTHE PRIN- � ';hereafter contested only if such obligations CIPAL AMOUNT OF NOT TO EX- were authorized for an object or purpose � CEED$23,000,OOOTO FTNANCE SAID � _�— __� NOTICE The resolution, a summary of which is published herewith, has been adopted on July 12, 2016 and the validity of the obligations authorized by such resolution may be hereafter contested only if such obligations were authorized for an object or purpose for which the Town of Southold, in the County of Suffolk, New York, is not authorized to expend money or if the provisions of law which should have been complied with as of the date of publication of this Notice were not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty days after the publication of this Notice, or such obligations were authorized in violation of the provisions of the constitution. BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD DATED: July 12, 2016 Southold, New York Elizabeth A. Neville Town Clerk REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS 1N THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO The object or purpose is to refund all or a portion of certain outstanding bonds of the Town issued in 2008, 2009 and 2011 for various purposes. The periods of probable usefulness of the objects or purposes for which the bonds to be refunded were issued consist of various periods ranging from 5 years to 30 years, commencing on the date of original issuance of the first bonds or bond anticipation notes issued for the respective objects or purposes for which the outstanding bonds were issued. The maximum amount of obligations authorized to be issued is $23,000,000. A complete copy of the Bond Resolution summarized above shall be available for public inspection during normal business hours at the office of the Town Clerk, Town Hall, 53095 Main Road, Southold,New York. Please publish in the July 21, 2016 edition of the Suffolk Times and forward three (3) affidavits of publication to the Southold Town Clerks Office. Copies To The Following: Town Attorney Town Board Comptroller Bond Council Bond File Town Clerk Bulletin Board ., . , � EXTRACT OF MINUTES Meeting of the Town Board of the Town of Southold, in the County of Suffolk,New York July 12, 2016 , � * � A regular meeting of the Town Board of the Town of Southold, in the County of Suffolk, New York, was held at the Town Hall, 53095 Main Road, Southold, New York, on July 12, 2016�. - There were present: Scott A. Russell, Supervisor; and Board Members: Councilman James Dinizio, Jr. Councilwoman Jill Doherty Councilman Robert Ghosio _ Councilman William Ruland Justice Louisa Evans There were absent: None Also present: Elizabeth A. Neville, Town Clerk William Duffy, Town Attorney �: * * Councilwoman Jill Doherty offered the following resolution and moved its adoption: . . REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED NLY 12, 2016, � AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS 1N THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO Recitals WHEREAS, the Town of Southold, in the County of Suffolk, New York (herein called the "Town"), has heretofore issued on May 29, 2008 its $8,850,000 Public Improvement Serial Bonds-2008 (the "2008 Bonds"), which are currently outstanding in the principal amount of$6,075,000 (the "Outstanding 2008 Bonds"), and mature on May 15 in each of the years and in the principal amounts and bear interest payable semiannually on May 15 and November 15 in each year to maturity, as follows: ' Year of Principal Interest Maturitv Amount Rate 2017 $375,000 4.00% 2018 400,000 4.00 2019 400,000 4.00 2020 _ 400,000 4.00 � 2021 425,000 4.00 2022 425,000 4.00 2023 425,000 4.00 2024 450,000 4.00 2025 450,000 4.125 2026 450,000 4.25 Year of Principal Interest Maturity Amount Rate 2027 450,000 4.25 , 2028 475,000 4.25 2029 475,000 4.25 2030 475,000 4.25 WHEREAS, the 2008 Bonds maturing on or before May 15, 2018 are not subject to redemption prior to maturity; and the Bonds maturing on or after May 15, 2019 are subject to redemption prior to maturity, at the option of the Town, on May 15, 2018 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on March 19, 2009 its $5,283,000 Public Improvement Serial Bonds-2009 (the "2009 Bonds"), which are currently outstanding in the priricipal amount of$3,945,000 (the "Outstanding 2009 Bonds"), and mature on March 15 in each of the years and in the principal amounts and bear interest payable semiannually on March 15 and September 15 in each year to maturity, as follows: Year of Principal Interest Maturity Amount Rate 2017 $215,000 4.00% 2018 225,000 4.00 2019 230,000 4.00 2020 240,000 4.00 2021 250,000 4.00 � 2022 260,000 4.00 2023 270,000 4.00 2024 290,000 4.00 2025 300,000 4.125 Year of Principal Interest Maturitv Amount Rate 2026 310,000 4.125 2027 325,000 4.25 2028 330,000 4.25 2029 345,000 4.25 2030 355,000 4.375 WHEREAS, the 2009 Bonds maturing on or before March 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after March 15, 2020 are subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on June 29, 2011 its $13,175,000 Public Improvement Serial Bonds-2011 (the "2011 Bonds"), which are currently outstanding in the principal amount of $10,250,000 (the "Outstanding 2011 Bonds" and, together with the Outstanding 2008 Bonds and the Outstanding 2009 Bonds, the "Outstanding Bonds"), which mature on August 15 in each of the years and iri the principal amounts and bear interest payable semiannually on February 15 and August 15 in each year to maturity, as follows: Year of Principal Interest Maturitv Amount Rate 2017 $640,000 3.00% � 2018 650,000 3.00 2019 665,000 3.00 2020 675,000 3.00 2021 700,000 3.00 2022 720,000 3.125 2023 740,000 � 3.25 . � II . Year of Principal Interest '� Maturity Amount Rate 2024 750,000 3.50 2025 780,000 3.625 2026 735,000 3.750 2027 760,000 4.00 � 2028 785,000 4.00 2029 810,000 4.00 ; 2030 840,000 4.00 F WHEREAS, the 2011 Bonds maturing on or before August 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after August 15, 2Q20 are subj ect to redemption prior to maturity, at the option of the Town, on August 15, 2019 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and''in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and � ! _ WHEREAS, Sections 90.00 and 90.10 of the Local Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of New York (herein called the "Law"), authorize the Town to refund all or a portion of the outstanding unredeemed maturities' of the Outstanding Bonds by the issuance of new bonds, the issuance of which will result in present value debt service savings for the Town, and the Town Board has determined that it may be advantageous to refund all or a portion of the Outstanding Bonds; and ' WHEREAS, in order effectuate the refunding, it is now necessary to adopt this Refunding Bond Resolution; � . NOW, THEREFORE, be it , RESOLVED BY THE TOWN BOARD OF THE TOWN OF SOUTHOLD,,NEW YORK (by the favorable vote of at least two-thirds of all the members of said Town Boa'rd), AS FOLLOWS: Section 1. In this resolution, the following definitions�apply, unless a different i meaning clearly appears from the context: . � �I . . I� cc » cc » (a) Bond To Be Refunded or Bonds To Be Refunded means all or any portion of the aggregate Outstanding Bonds, as shall be determined in acco,'rdance with Section 8 hereof. � (b) "Escrow Contract" means the contract to be entered into by and between the � ' Town and the Escrow Holder pursuant to Section 10 hereof. ' 'i (c) "Escrow Holder" means the bank or trust company designated as such pursuant to Section 10 hereof. ; (d) "Outstanding Bonds" shall mean the outstanding unredeemed maturities of the 2008 Bonds, the 2009 Bonds and the 2011 Bonds. i (e) "Present Value Savings" means the dollar savings which result from the issuance of the Refunding Bonds computed by discounting the principal and � interest payments on both the Refunding Bonds and the Bonds To Be Refunded from the respective maturities thereof to the date of issue��i of the Refunding Bonds at a rate equal to the effective interest cost of the Refunding Bonds. The effective interest cost of the Refunding Bonds shall be tliat rate which is arrived at by doubling the semi-annual interest rate (comp�ounded- semi-annually) necessary to discount the debt service payments �on the Refunding'Bonds�from the maturity dates thereof to the date of issue', of the Refunding Bonds and to the agreed upon price including estimated accrued interest. ' (� "Redemption Dates" mean May 15, 2018 and any date thereafter with ��respect � to the 2008 Bonds; March 15, 2019 and any date tliereafter with respec,t to the 2008 Bonds; and August 15, 2020 and any date thereafter with respect to the 2011 Bonds; as shall be determinecl by the Supervisor in accordance with Section 8. , (g) "Refunding Bond" or "Refunding Bonds" means all or a portion'�of the F $23,000,000 Refunding Serial Bonds-2016 of the Town of Southold, authorized to be issued pursuant to Section 2 hereo£ ' ° i 1 ; (h) "Refunding Bond Amount Limitation" means an amount of Refunding�Bonds which does not exceed the principal,amount of Bonds To Be Refunded plus the aggregate amount of unmatured interest payable on such Bonds To Be Refunded, to and including the applicable Redemption Date, plus redemption premiums payable on such Bonds To Be Refunded as of such Redemption Date, as hereinabove referred to in the Recitals hereof, plus costs and expenses incidental to the issuance of the Refunding Bonds including the development of the Refunding Financial Plan, and of executing and � - performing the terms.and conditions of the Escrow Contract and all fees and charges of the Escrow Holder as referred to in Section 10 hereo£ I; Section 2. The Town Board of the Town (herein called the "Town B�oard"), hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates an amount not to exceed $23,000,000 to accomplish such refunding. The plan of financing said appropriation _ includes the issuance of the Refunding Bonds in the principal amount of not to exceed $23,000,000 and the levy and collection of a tax upon all the taxable real property within the" Town to pay the principal of and interest on said Refunding Bonds as the same shall become due and payable. Bonds of the Town in the maximum principal amount of $23,000,000 and designated substantially as "REFUNDING SERIAL BONDS-2016" are hereby authorized to be � issued pursuant to the provisions of the Law. The proposed financial plan for the refunding in the form attached hereto as Exhibit A (the "Refunding Financial Plan") prepared for the Town by its Financial Advisor, Munistat Services, Inc., and hereby accepted and approved, inclu'des the deposit of all the proceeds of said Refunding Bonds with an Escrow Holder pursuant to an Escrow Contract as authorized in Section 10 hereof, the payment of all costs incurred�lby the Town in connection with said refunding from such proceeds and, to the extent requir,ed, the investment of a portion of such proceeds by the Escrow Holder in certain obligations. The principal of and interest on such investments, together with the balance of such proceeds to be held uninvested, if any, shall be sufficient to pay (i) the principal of and interest on the Bonds To r Be Refunded becoming due and payable on and prior to each applicable Redemption D'ate and (ii) the principal of and premium on the Bonds To Be Refunded which are to be called for redemption prior to maturity on any such Redemption Date. ��I � Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are all or a � portion of the Outstanding Bonds issued pursuant to various bond resolutions duly adopted by the Town Board on their respective dates, authorizing the issuance of bonds of the Town to _ finance various purposes of the Town. In accordance with the Refunding Financial Plan, the Refunding Bonds authorized in the aggregate principal amount of not to exceed $23,000,000 shall mature in amounts and at dates to be determined. The Supervisor, the chief fiscal officer of the Town, is hereby authorized to approve all details of the Refunding Financial Plan not contained herein. Section 4. The issuance of the Refunding Bonds will not exceed the Refunding Bond Amount Limitation. The Refunding Bonds shall mature not later than the maximum period of probable usefulness ("PPU") permitted by law at the time of original issuance of the Bonds to be Refunded, as set forth in Exhibit B annexed hereto and hereby made a part hereof, for the objects or purposes financed with the proceeds of the Bonds to be Refunded, commencing at the date of issuance of the first bond or bond anticipation note issued in anticipation of the sale of such bonds. Section 5. The aggregate amount of estimated Present Value Savings is set forth ,in the proposed Refunding Financial Plan attached hereto as Exhibit A, computed in accordance with subdivision two of paragraph b of Section 90.10 of the Law. Said Refunding Financial Plan . has been prepared based upon the assumption that the Refunding Bonds will be issued in the aggregate principal amount, and will mature, be of such terms and bear such interest as set forth therein. The Town Board recognizes that the principal amount of the Refunding Bonds, the maturities, terms and interest rates, the provisions, if any, for the redemption thereof prior to maturity, and whether or not any or all of the Refunding Bonds will be insured, and the resulting present value savings, may vary from such assumptions and that the Refunding Financial Plan may vary from that attached hereto as Exhibit A. Section 6. The Refunding Bonds may be sold at public or private sale. (a) If the Bonds are sold at private sale, the Supervisor, as the chief fiscal officer of the Town, is hereby authorized to execute a purchase contract on behalf of the Town for the sale of said Refunding Bonds, provided that the terms and conditions of such sale shall be approved by the State Comptroller. (b) In the event that the Refunding Bonds are sold at public sale pursuant to Section 57.00 of the Law, the Supervisor is hereby authorized and directed to prepare or have prepared a Notice of Sale, a summary of which shall be published at least once in (a) "THE BOND BUYER," published in the City of New York and (b) the official newspaper(s) of the Town having general circulation within said Town, not less than five (5) nor more than thirty (30) days prior to the date of said sale. A copy of such notice shall be sent not less than eight (8) � nor more than thirty (30) days prior to the date of said sale to (1) the State Comptroller, Albany, New York 12236; (2) at least two banks or trust companies having a place of business in the county in which the Town is located, or, if only one bank is 1'ocated in such County, then to such � bank and to at least two banks or trust companies having a place of business,in an adjoining county; (3) "THE BOND BUYER," 1 State Street Plaza,New York,New York 10004; and (4) at least 10 bond dealers. � , (c) Prior to the issuance of the Refunding Bonds, the Supervisor shall file with the Town Board all requisite certifications, including a certificate approved by the State - Comptroller setting forth the Present Value Savings to the Town resulting from the issuance of the Refunding Bonds. In connection with such sale, the Town authorizes the preparation of an Official Statement and approves its use in connection with such sale, and further consents to the distribution of a Preliminary Official Statement prior to the date said Official Statement is . distributed. The Supervisor is hereby further authorized and directed to take any and all actions necessary to accomplish said refunding, and to execute any contracts and agreements for the purchase of and payment for services rendered or to be rendered to the Town in connection with said refunding, including the preparation of the Refunding Financial Plan referred to in Section 2 hereof. � Section 7. Each of the Refunding Bonds authorized by this resolution shall contain the recital of validity prescribed by Section 52.00 of the Law and said Refunding Bonds � shall be general obligations of the Town, payable as to�both principal and interest by a general _ tax upon all the taxable real property within the Town. The faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the principal of and interest on said Refunding Bonds and provision shall be made annually in the budget of the Town for (a) the amortization and redemption of the Refunding Bonds to mature in such year and (b) the payment of interest to be due and payable in such year. , Section 8. Subject to the provisions of this resolution and of the Law, and pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of bonds having substantially level or declining annual debt service, and Sections 50.00, 56.00 to 60.00, 90.00, 90.10 and 168.00 of the Law, the powers and duties of the Town Board relative to determining the amount of Bonds To Be Refunded, prescribing the terms, form and contents and as to the sale and issuance of the Refunding Bonds, and executing an arbitrage certificate relative thereto, and as to executing the Escrow Contract described in Section 10, the Official Statement referred to in Section 6 and any contracts for credit enhancements in connection with the issuance of the Refunding Bonds and any other certificates and agreements, as to making elections to call 'in and redeem all or a portion of the Bonds to be Refunded, and as to any determinations relating to the investment of the proceeds of the Refunding Bonds, are hereby delegated to the Supervisor, the chief fiscal officer of the Town. Section 9. The validity of the Refunding Bonds authorized by this resolution may be contested only if: (a) such obligations are authorized for an object or purpose for which the Town is not authorized to expend money, or (b) the provisions of law which should be complied with at the date of the publication of such resolution, or a surrunary thereof, are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty days after the date of such publication, or (c) such obligations are authorized in violation of the provisions of the constitution. Section 10. Prior to the issuance of the Refunding Bonds, the Town shall contract with a bank or trust company located and authorized to do business in New York State, for the purpose of having such bank or trust company act as the Escrow Holder of the proceeds, inclusive of any premium from the sale of the Refunding Bonds, together with all income derived from the investment of such proceeds. Such Escrow Contract shall contain such terms and conditions as shall be necessary in order to accomplish the Refunding Financial Plan, including provisions authorizing the Escrow Holder, without further authorization or direction from the Town, except as otherwise provided therein, (a) to make all required payments of principal, interest and redemption premiums to the appropriate paying agent with respect to the Bonds To Be Refunded, (b)to pay costs and expenses incidental to the issuance of the Refunding Bonds, including the development of the Refunding Financial Plan, arid costs and expenses relating to the execution and performance of the terms and conditions of the Escrow Contract and all of its fees and charges as the Escrow Holder, (c) at the appropriate time or times to cause to be given on behalf of the Town the notice of redemption authorized to be given pursuant to Section 13 hereof, and (d) to invest the monies held by it consistent with the provisions of the Refunding Financial Plan. The Escrow Contract shall be irrevocable and shall constitute a covenant with the holders of the Refunding Bonds. Section 11. The proceeds, inclusive of any premium, from the sale of the Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with the Escrow Holder in accordance with the Escrow Contract. All moneys held by the Escrow Holder, if invested, shall be invested only in direct obligations of the United States of America or in obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which obligations shall mature or be subject to redemption at the option of the ' holder thereof not later than the respective dates when such moneys will be required to make payments in accordance with the Refunding Financial Plan. Any such moneys remaining in the custody of the Escrow Holder after the full execution of the Escrow Contract shall be returned to the Town and shall be applied by the Town only to the payment of the principal of or interest on the Refunding Bonds then outstanding. � Section 12. That portion of such proceeds from the sale of the Refunding Bonds, together with interest earned thereon, which shall be required for the payment of the principal of and interest on the Bonds To Be Refunded, including any redemption premiums�, in accordance with the Refunding Financial Plan, shall be irrevocably committed and pledged to such purpose and the holders of the Bonds To Be Refunded shall have a lien upon such moneys and the � investments thereof held by the Escrow Holder. All interest earned from the investment of such moneys which is not required for such payment of principal of and interest on the Bonds To Be Refunded shall be irrevocably committed and pledged to the payment of the principal of and interest on the Refunding Bonds, or such portion or series thereof as shall be required by the Refunding Financial Plan, and the holders of such Refunding Bonds shall have a lien upon such moneys held by the Escrow Holder. The pledges and liens provided for herein shall become valid and binding upon the issuance of the Refunding Bonds and the moneys and investments held by the Escrow Holder shall immediately be subject thereto without any further act. Such pledges and liens shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Town irrespective of whether such parties have notice thereof. Neither this resolution, the Escrow Contract, nor any other instrument relating to such pledges and liens, need be filed or recorded. Section 13. In accordance with the provisions of Section 53.00 and of paragraph h of Section 90.10 of the Law, the Town Board hereby elects to call in and redeem all or a portion of the Bonds To Be Refunded which are subject to prior redemption according to their terms on the Redemption Date, as shall be determined by the Supervisor in accordance with Section 8 hereo£ The sum to be paid therefor on the applicable Redemption Date shall be the par value thereof, the accrued interest to such Redemption Date and the redemption premiums, if any. The Escrow Holder is hereby authorized and directed to cause a notice of such call for redemption to be given in the name of the Town by mailing such notice at least thirty days prior to such Redemption Date, and in accordance with the terms appearing in the Bonds to be Refunded, to the registered holders of the Bonds To Be Refunded which are to be called in and redeemed. Upon the issuance of the Refunding Bonds, the election to call in and redeem the Bonds To Be Refunded which are to_be called in and redeemed in accordance herewith and the direction to the Escrow Holder to cause notice thereof to be given as provided in this Section shall become irrevocable and the provisions of this Section shall constitute a covenant with the holders, from time to time, of the Refunding Bonds, provided that this Section may be amended from time to time as may be necessary to comply with the publication requirements of paragraph a of Section 53.00 of the Law, as the same may be amended from time to time. Section 14. This bond resolution shall take effect immediately, and the Town Clerk is hereby authorized and directed to publish the foregoing resolution, in summary, together with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in "The Suffolk Times," a newspaper having general circulation in the Town and hereby designated the official newspaper of said Town for such publication. ' The adoption of the foregoing resolution was,seconded by Justice Louisa P. Evans and duly put to a vote on roll call, which resulted as follows: AYES: Scott A. Russell, Supervisor Councilman James Dinizio, Jr. Councilwoman Jill Doherty Councilman Robert Ghosio Councilman William Ruland Justice Louisa Evans NOES: None The resolution was declared adopted. �*:��******** CERTIFICATE I, ELIZABETH A. NEVILLE, Town Clerk of the �Town of Southold, in the County of Suffolk, New York, HEREBY CERTIFY that the foregoing annexed �extract of the minutes of a meeting of the Town Board of said Town of Southold duly called and held on July 12, 2016, has been compared by me with the original minutes as , � officially recorded in my office in the Minute Book of said Town Board and is a true, complete and correct copy thereof and of the whole of said original minutes so far as the same relate to the subject matters referred to in said extract. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said Town of Southold this 12th day of July, 2016. (SEAL) � Town Clerk , � Southold Town Board - Letter Board Meeting of July 12, 2016 �s°"�```°��`� RESOLUTION 2016-674 Item# 5.14 '�°%�a� ADOPTED DOC ID: 12094 �- THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2016-674 WAS ADOPTED AT THE REGULAR MEETING OF TH� SOUTHOLD TOWN BOARD ON - JITLY 12,2016: REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS 1N THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO Recitals WHEREAS, the Town of Southold, in the County of Suffolk, New York (herein called the "Town"), has heretofore issued on May 29, 2008 its $8,850,000 Public Improvement Serial Bonds-2008 (the "2008 Bonds"), which are currently outstanding in the principal amount of$6,075,000 (the "Outstanding 2008 Bonds"), and mature on May 15 in each of the years and in the principal amounts and bear interest payable semiannually on May 15 and November 15 in each year to maturity, as follows: Year of Principal Interest Maturity Amount Rate 2017 $375,000 4.00% 2018 400,000 4.00 2019 400,000 4.00 2020 400,000 4.00 2021 425,000 4.00 2022 425,000 4.00 2023 425,000 4.00 2024 450,000 4.00 2025 450,000 4.125 2026 450,000 4.25 2027 450,000 4.25 2028 475,000 425 Generated July 13, 2016 Page 21 Southold Town Board - Letter Board Meeting of July 12, 2016 , 2029 475,000 4.25 2030 475,000 4.25 WHEREAS, the 2008 Bonds maturing on or before May 15, 2018 are not subject to redemption prior to maturity; and the Bonds maturing on or after May 15, 2019 are subject to redemption prior to maturity, at the option of the Town, on May 15, 2018 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on March 19, 2009 its $5,283,000 Public Improvement Serial Bonds-2009 (the "2009 Bonds"), which are currently outstanding in the principal amount of$3,945,000 (the "Outstanding 2009 Bonds"), and mature on March 15 in each of the years and in the principal amounts and bear interest payable semiannually on March 15 and September 15 in each year to maturity, as follows: Year of Maturi Principa 1 Amount Interest Rate 2017 $215,000 4.00% 2018 225,000 4.00 2019 230,000 4.00 2020 240,000 4.00 2021 250,000 4.00 2022 260,000 4.00 2023 270,000 4.00 2024 290,000 4.00 2025 300,000 4.125 2026 310,000 4.125 2027 325,000 4.25 2028 330,000 4.25 2029 345,000 4.25 2030 355,000 4.375 WHEREAS, the 2009 Bonds maturing on or before March 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after March 15, 2020 are subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on June 29, 2011 its $13,175,000 Generated July 13, 2016 Page 22 �. Southold Town Board - Letter Board Meeting of July 12, 2016 Public Improvement Serial Bonds-2011 (the "2011 Bonds"), which are currently outstanding in the principal amount of $10,250,000 (the "Outstanding 2011 Bonds" and, together with the Outstanding 2008 Bonds and the Outstanding 2009 Bonds, the "Outstanding Bonds"), which mature on August 15 in each of the years and in the principal amounts and bear interest payable semiannually on February 15 and August 15 in each year to maturity, as follows: ' Year of � � Maturity . Principa � 1 � Amount Interest � Rate 2017 $640,000 3.00°/a � 2018 650,000 3.00 2019 665,000 3.00 2020 675,000 3.00 2021 700,000 3.00 2022 720,000 3.125 2023 740,000 3.25 ' 2024 750,000 3.50 ' , � 2025 780,000 3.625 2026 735,000 3.750 2027 760,000 4.00 2028 785,000 4.00 , 2029 .810,000 ' 4.00 - 2030 840,000 4.00 � WHEREAS, the 2011 Bonds maturing on or before August 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after August 15,�2020 are subject to redemption prior to-maturity, at the option of the Town, on August 15, 2019 and thereafter on any date; in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, Sections 90.00 and 90.10 of the� Local Finance Law, constituting _ Chapter 33-a of the Consolidated Laws of the State of New York (herein called the "Law"), authorize the Town to refund all or a portion of the outstanding unredeemed maturities of the Outstanding Bonds by the issuance of new bonds, the issuance of which will result in present value debt service savings for the Town, and the Town Board has determined that it may be advantageous to refund all or a portion of the Outstanding Bonds; and � WHEREAS, in order effectuate the refunding, it is now necessary to adopt this Refunding Bond Resolution; NOW, THEREFORE, be it Generated July 13, 2016 Page 23 . � Southold Town Board - Letter Board Meeting of July 12, 2016 RESOLVED BY THE TOWN BOARD OF THE TOWN OF SOUTHOLD,NEW YORK (by the favorable vote of at least two-thirds of all the members of said Town Board), AS FOLLOWS: Section 1. In this resolution, the following definitions.apply, unless a different meaning clearly appears from the context: . � (a) "Bond To Be Refunded" or"Bonds To Be Refunded" means all or any portion' of the aggregate Outstanding Bonds, as shall be determined in accordance with Section 8 hereof. ' (b) "Escrow Contract" means the contract to be entered into by and between the Town and the Escrow Holder pursuant to Section 10 hereof. � (c) "Escrow Holder" means the bank or trust company designated as such pursuant to Section 10 hereof. � (d) "Outstanding Bonds" shall mean the outstanding unredeemed maturities of the . 2008 Bonds,the 2009 Bonds and the 2011 Bonds. (e) "Present Value Savings" means the dollar savings which result from the _ issuance of the Refunding Bonds computed by discounting the principal and interest payments on both the Refunding Bonds and the Bonds To Be Refunded from the respective maturities thereof to the date of issue of the Refunding Bonds at a rate equal'to the effective interest cost of the Refunding Bonds. The effective interest cost of the Refunding Bonds shall be that rate which is arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the Refunding Bonds from the maturity dates thereof to the date of issue of the _ Refunding Bonds and to the agreed upon price including estimated accrued � interest. (� "Redemption Dates" mean May 15, 2018 and any date thereafter with respect to the 2008 Bonds; March 15, 2019 and any date thereafter with respect to the . 2008 Bonds; and August 15, 2020�and any date thereafter with respect to the 2011 Bonds; as sha.11 be determined by the Supervisor in accordance with Section 8. � (g) "Refunding Bond" or "Refunding Bonds" means all or a portion of the $23,000,000 Refunding Serial Boncis-2016 of the Town of Southold, authorized to be issued pursuant to Section 2 hereof. ' ,(h) "Refunding Bond Amount Limitation" means an amount of Refunding Bonds which does not exceed the principal amount of Bonds To Be Refunded plus the aggregate amount of unmatured interest payable on such Bonds To Be Refunded, to and including the applicable Redemption Date, plus redemption premiums payable on such Bonds To Be Refunded as of such Redemption Date, as hereinabove referred to in the Recitals hereof, plus costs and expenses incidental to the issuance of the Refunding Bonds including the development of the Refunding Financial Plan, and of executing and performing the terms and conditions of'the Escrow Contract and all fees and � charges of the Escrow Holder as referred to in Section 10 hereof. Section 2. The Town Board of the Town (herein called the "Town Board"), hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates an amount not Generated July 13, 2016 � , - Page 24 � Southold Town Board - Letter Board Meeting of July 12, 2016 to exceed $23,000,000 to accomplish such refunding. The plan of financing said appropriation includes the issuance of the Refunding Bonds in the principal amount of not to exceed $23,000,000 and the levy and collection of a tax upon all the taxable real property within the Town to pay the principal of and interest on said Refunding Bonds as the same shall become due and payable. Bonds of the Town in the m�imum principal amount of $23,000,000 and designated substantially as "REFUNDING SERIAL BONDS-2016" are hereby authorized to be issued pursuant to the provisions of the Law. The proposed financial plan for the refunding in the form attached hereto as Exhibit A (the "Refunding Financial Plan") prepared for the Town by its Financial Advisor, Munistat Services, Inc., and hereby accepted and approved, includes the deposit of all the proceeds of said Refunding Bonds with an Escrow Holder pursuant to an Escrow Contract as authorized in Section 10 hereof, the payment of all costs incurred by the Town in connection with said refunding from such proceeds and, to the extent required, the investment of a portion of such proceeds by the Escrow Holder in certain obligations. The principal of and interest on such investments, together with the balance of such proceeds to be held uninvested, if any, shall be sufficient to pay (i) the principal of and interest on the Bonds To Be Refunded becoming due and payable on and prior to each applicable Redemption Date and (ii) the principal of and premium on the Bonds To Be Refunded which are to be called for redemption prior to maturity on any such Redemption Date. Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are all or a portion of the Outstanding Bonds issued pursuant to various bond resolutions duly adopted by the Town Board on their respective dates, authorizing the issuance of bonds of the Town to finance various purposes of the Town. In accordance with the Refunding Financial Plan, the • Refunding Bonds authorized in the aggregate principal amount of not to exceed $23,000,000 sha11 mature in amounts and at dates to be determined. The Supervisor,the chief fiscal officer of the Town, is hereby authorized to approve all details of the Refunding Financial Plan not contained herein. � Section 4. The issuance of the Refunding Bonds will not exceed the Refunding Bond Amount Limitation. The Refunding Bonds shall mature not later than the maximum period of probable usefulness ("PPU") permitted by law at the time of original issuance of the Bonds to be Refunded, as set forth in Exhibit B annexed hereto and hereby made a part hereof, for the objects or purposes financed with the proceeds of the Bonds to be Refunded, commencing at the date of issuance of the first bond or bond anticipation note issued in anticipation of the sale of such bonds. Section 5. The aggregate amount of estimated Present Value Savings is set forth in the proposed Refunding Financial Plan attached hereto as Exhibit A, computed in accordance with subdivision two of paragraph b of Section 90.10 of the Law. Said Refunding Financial Plan has been prepared based upon the assumption that the Refunding Bonds will be issued in the aggregate principal amount, and will mature, be of such terms and bear such interest as set forth therein. The Town Board recognizes that the principal amount of the Refunding Bonds, the maturities, terms and interest rates, the provisions, if any, for the redemption thereof prior to maturity, and whether or not any or all of the Refunding Bonds will be insured, and the resulting present value savings, may vary from such assumptions and that the Refunding Financial Plan may vary from that attached hereto as Exhibit A. Section 6. The Refunding Bonds may be sold at public or private sale. (a) If the Bonds are sold at private sale, the Supervisor, as the chief fiscal officer Generated July 13, 2016 Page 25 ` Southold Town Board - Letter Board Meeting of July 12, 2016 of the Town, is hereby authorized to execute a purchase contract on behalf of the Town for the sale of said Refunding Bonds, provided that the terms and conditions of such sale shall be approved by the State Comptroller. (b) In the event that the Refunding Bonds are sold at public sale pursuant to Section 57.00 of the Law, the Supervisor is hereby authorized and directed to prepare or have prepared a Notice of Sale, a summary of which shall be published at least once in (a) "THE BOND BUYER," published in the City of New York and (b) the official newspaper(s) of the Town having general circulation within said Town, not less than five (5) nor more than thirty (30) days prior to the date of said sale. A copy of such notice shall be sent not less than eight (8) nor more than thirty (30) days prior to the date of said sale to (1) the State Comptroller, Albany, New York 12236; (2) at least two banks or trust companies having a place of business in the county in which the Town is located, or, if only one bank is located in such County, then to such bank and to at�least two banks or trust companies having a place of business in an adjoining county; (3) "THE BOND BUYER," 1 State Street Plaza,New York, New York 10004; and (4) at least 10 bond dealers. (c) Prior to the issuance of the Refunding Bonds, the Supervisor shall file with the Town Board all requisite certifications, including a certificate approved by the State Comptroller setting forth the Present Value Savings to the Town resulting from the issuance of the Refunding Bonds. In connection with such sale, the Town authorizes the preparation of an Official Statement and approves its use in connection with such sale, and further consents to the distribution of a Preliminary Official Statement prior to the date said Official Statement is distributed. The Supervisor is hereby fiirther authorized and directed to take any and all actions necessary to accomplish said refunding, and to execute any contracts and agreements for the purchase of and payment for services rendered or to be rendered to the Town in connection with said refunding, including the preparation of the Refunding Financial Plan referred to in Section 2 hereof. Section 7. Each of the Refunding Bonds authorized by this resolution shall contain the recital of validity prescribed by Section 52.00 of the Law and said Refunding Bonds shall be general obligations of the Town, payable as to both principal and interest by a general tax upon all the taxable real property within the Town. The faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the principal of and interest on said Refunding Bonds and provision shall be made annually in the budget of the Town for (a) the amortization and redemption of the Refunding Bonds to mature in such year and (b) the payment of interest to be due and payable in such year. Section 8. Subject to the provisions of this resolution and of the Law, and pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of bonds having substantially level or declining annual debt service, and Sections 50.00, 56.00 to 60.00, 90.00, 90.10 and 168.00 of the Law, the powers and duties of the Town Board relative to determining the amount of Bonds To Be Refunded, prescribing the terms, form and contents and as to the sale and issuance of the Refunding Bonds, and executing an arbitrage certificate relative thereto, and as to executing the Escrow Contract described in Section 10, the Official Statement referred to in Section 6 and any contracts for credit enhancements in connection with the issuance of the Refunding Bonds and any other certificates and agreements, as to making elections to call in and redeem all or a portion of the Bonds to be Refunded, and as to any determinations relating to the investment of the proceeds of the Refunding Bonds, are hereby Generated July 13, 2016 Page 26 r ♦ Southold Town Board - Letter Board Meeting of July 12, 2016 _ delegated to the Supervisor, the chief fiscal officer of the Town. � Section 9. The validity of the Refunding Bonds authorized by this resolution�may be contested only if: � (a) such obligations are authorized� for an object or purpose for which the Town is not authorized to expencl money, or (b) the provisions of law which should be complied with at the date of the publication of such resolution�, or a summary thereof, are not substantially I, complied with, and an action, suit or proceeding contesting such validity is commenced within twenty days after the date of such publication, or � (c) such obligations are authorized in violation of the provisions of the constitution. - Section 10. Prior to the issuance of the Refunding Bonds,the Town shall contract with a bank or trust company located and authorized to do business in New York State, for the purpose of having such bank-or trust company act as the Escrow Holder of the proceeds, inclusive of any premium from the sale �of the Refunding Bonds, together with all income derived from the investment of such proceeds. Such Escrow Contract shall contain such terms and�conditions as shall be necessary in order to accomplish the Refunding Financial Plan, including provisions authorizing the Escrow Holder, without further authorization or direction from the Town, except as otherwise provided therein, (a) to make all required payments of principal, interest and redemption premiums to the appropriate paying agent with respect to the � Bonds To Be Refunded, (b)to pay costs and expenses incidental to the issuance of the Refunding Bonds, including the development of the Refunding Financial Plan, and costs and expenses relating to the execution and performance of the terms and conditions of the Escrow Contract and all of its fees and charges as the Escrow Holder, (c) at the appropriate time or times to cause to be given on behalf of the Town the notice of redemption authorized to be given pursuant to Section 13 hereof, and (d) to invest the monies held by it consistent with the provisions of the Refunding Financial Plan: The Escrow Contract shall be irrevocable and shall constitute a covenant with the holders of the Refunding Bonds. Section 11. The proceeds, inclusive of any premium, from the sale of the Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with the Escrow Holder in accordance with the Escrow Contract. All moneys held by the Escrow Holder, if invested, shall be invested only in direct obligations of the United States of America or,in obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which obligations shall mature or be subject to redemption at the option of the holder thereof not later than the respective dates when such moneys will be required to make payments in accordance with the Refuriding Financial Plan.� Any such moneys remaining in the custody of the Escrow Holder after the full execution of the Escrow Contract shall be returned to the Town and shall be applied by the Town only to the payment of the principal of or interest on the Refunding Bonds then outstanding. Section 12. That portion of such proceeds from the sale of the Refunding Bonds, together with interest earned thereon, which shall be required for the payment of the principal of and interest on the Bonds To Be Refunded, including any redemption premiums, in accordance with the Refunding Financial Plan, shall be irrevocably committed and pledged to such purpose and the holders of the Bonds To Be Refunded shall have a lien upon• such moneys and the Generated July 13, 2016 Page 27 - � . Southold Town Board - Letter Board Meeting of July 12, 2016 investments thereof held by the Escrow Holder. All interest earned from the investment of such moneys which is not required for such payment of principal of and interest on the Bonds To Be Refunded shall be irrevocably committed and pledged to the payment of the principal of and interest on the Refunding Bonds, or such portion or series thereof as shall be required by the Refunding Financial Plan, and the holders of such Refunding Bonds shall have a lien upon such moneys held by the Escrow Holder. The pledges and liens provided for herein shall become valid and binding upon the issuance of the Refunding Bonds and the moneys and investments held by the Escrow Holder shall immediately be subject thereto without any further act. Such pledges and liens shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the,Town irrespective of whether such parties have notice thereof. Neither this resolution, the Escrow Contract, nor any other instrument relating to such pledges and liens, need be filed or recorded. , Section 13. In accordance with the provisions of Section 53.00 and of paragraph h of Section 90.10 of the Law, the Town Board hereby elects to call in and redeem all or a portion of the Bonds To Be Refunded which are subject to prior redemption according to their terms on the Redemption Date, as shall be determined by the Supervisor in accordance with Section 8 hereof. The sum to be paid therefor on the applicable Redemption Date shall be the par value thereof, the accrued interest to such Redemption Date and the redemption premiums, if any. The Escrow Holder is hereby authorized and directed to cause a notice of such call for redemption to be given in the name of the Town by mailing such notice at least thirty days prior to such Redemption Date, and in accordanee with the terms appearing in the Bonds to be Refunded', to the registered holders of�the Bonds To Be Refunded which are to be called in and redeemed. Upon the issuance of the Refunding Bonds, the election to call in and redeem the Bonds To Be Refunded which are to be called in and redeemed in accordance herewith and the direction to the Escrow Holder to cause notice thereof to be given as provided in this Section sha11 become irrevocable and the provisions of this Section shall constitute a covenant,with the holders, from time to time, of the Refunding Bonds, provided that this Section may be amended from time to time as may be necessary to comply with the publication requirements of paragraph a of Section 53.00 of the Law, as the same may be amended from time to time. Section 14. This bond resolution shall take effect immediately, and the Town Clerk is hereby authorized and directed to publish the foregoing resolution, in summary, together with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in "The Suffolk Ti�nes," a newspaper having general circulation in the Town and hereby designated the official newspaper of said Town for such�publication. - EXHIBIT B PERIODS OF PROBABLE USEFULNESS , (2008 Bonds) Purpose � Period of � � Probable � � - Usefulness � - � Years Open Space Preservation 30 � Acquisition of Land and building for Recreational Purposes 25 Generated July 13, 201.6 Page 28 . r Southold Town Board - Letter Board Meeting of July 12, 2016 (2009 Bonds) PurposePeriod of Probable Usefulness (Years) Open Space Preservation 30 Acquisition of an air vacuum drain cleaner 5 Improvements to Fishers Island Sewer District 30 � (2011 Bonds) PurposePeriod of Probable Usefulness (Years) Open Space Preservation 30 Fishers Island road construction 15 Construct a new Town animal shelter 15 ������ ��� Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Jill Doherty, Councilwoman SECONDER:Louisa P. Evans, Justice AYES: Dinizio Jr, Ruland, Doherty, Ghosio, Evans, Russell Generated July 13, 2016 Page 29 r.� - - _�' " CERTIFICATE OF DETERMINATION BY THE SUPERVISOR RELATIVE TO THE TERMS, FORM AND DETAILS OF SALE AND ISSUAN,G� OF THE $4,613,OOQ FUBLIC IMPROVEMENT SERiAL $ONDS-2016 OF THE TOWN OF SOUTHOLI�, NEW YORK, AND PROVIDING FOR T�SALE THEREOF I, Scott A. Russell, Supervisor of the Town of Southold, in the County of Suffolk, New York (the "Town"), HEREBY CERTIFY that pursuant to the powers and duties delegated � - to me, as the chief f scal officer of the Town, by the Town Board of the Town, pursuant to the bond resolutions duly adopted as set forth below and subject to the limitations prescribed in said bond resolutions,I have made the following determinations: l. Authorization, Princi�al Amount, Maturity Schedule and Designation. (a) Serial bonds (the "Bonds") of the Town shall be issued in the respective principal amounts for each purpose pursuant to the respective bond resolutions duly adopted by the Town Board on their respective dates as set forth in Schednle I attached hereto and hereby made a part hereof. The Bonds shall mature in the respective principal amounts on August 15 in each of the years 2017 through 2031,inclusive,as specified in said Schedule I. 1 (b) All of said Bonds referred to in subparagraph (a) shall be combined, for the purpose af sal�and issuance i�ito a siungle issue of serial bonds iu the aggrega�e principal amount of$4,613,000 and each Bond shall be designated"Public Improvement Serial Bond-2016." (c) Said Bonds shall mature on August 15 in the aggregate principal amounts of $288,000 in the year 2017; $285,Q00 in each of the years �018 to 2022; $290,000 in the year 2023; $250,000 in the year 2024; $245,000 in the years 2025 and 2026; $225,000 in the year 2027; and $235,000 in each of the years 2028 to 2034. Following the sale of the Bonds as provided for in paragraph 12 hereof, the amount of Bonds maturing in each year, as set forth in this paragraph, may be adjusted, in multiples of$5,000 and to the extent necessary, in order that 2692804.1 038723 CLD � ► . the Town can achieve annual debt service which is substantially level or declining, as authorized by law. The weighted average period of probable usefulness is 22.85501586 years. In addition, following the sale of the Bonds as provided for in paragraph 1� hereof,the aggregate par amount of Bonds may be decreased in an amount not in excess of � the premium offered by the successful bidder and the amount of each annual maturity, as set forth herein, may be adjusted to the extent necessary, in order that the total proceeds, which include the total par amount of the Bonds plus the original issue premium, if any, -received by the Town does not exceed the maximum amount permitted under applicable provisions of the Internal Revenue Code of 1986,as amended. 2. Issue Date. The Bonds shall be dated their date of delivery, which is expected to be August 25, 2016. The date of each Bond shall appear on the face thereof under the caption "Date of Original Issue,"and each Bond shall bear interest from such date. -- � 3. Interest Rate, and Dates and Medium of Payment. The Bonds shall bear interest from their date at a rate or rates per annum necessary for the Town to sell said Bonds,the bidder to name a rate or rates of interest per annum in multiples of one-hundredth of 1% or multiples of one-eighth of 1% which the Bonds are to bear, and said bidder may state different rates of interest for Bonds maturing in different calendar years; provided, however, that (i) only � , one rate of interest may be bid for all Bonds maturing in any one calendar year, and (ii) variations in rates of interest so bid shall be in ascending progression in order of maturity so that the rate of interest on Bonds maturing in any particular calendar year shall not be less than the . rate of interest applicable to Bonds maturing in any prior calendar year. The exact rate or rates of interest sha11 be determined by the undersigned Supervisor.upon the receipt of bids therefor,as hereinafter set forth, payable semiannually February 15, 2017, August 15, 2017, and semiannually thereafter on February 15 and August 15 in each year to maturiTy, payable in any 2692804.1 038723 CLD ; coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by wire transfer or in � clearinghouse funds on each interest payment date, payable to the person in whose name the Bond is registered at his address shown upon the books of the Town kept for that�purpose at the office of the Town Clerk, Town of Southold, 53095 Main Road, PO Box .1179, Southold, New York,as fiscal agent(the"Fiscal Agent"),as of the close of bus�ness on the last day of the month preceding each such interest payment date. - 4. Bonds Subject to Prior Redemption. The Bonds maturing on or before August 15,2024 will not be subject to redemption prior to maturity. The Bonds maturing on August 15, 2025 and thereafter,will be subject to redemption, at the option of the Town,prior to maturity,in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity -� (selected by lot within a maturity), on any dafe on or after August 15, 2024, at par plus accrued --- interest to the date of redemption. _ Notice of such call for redemption shall be given by mailing such notice to the registered owner at least thirty (30) days prior to the date set for such redemption. Notice of redemption having been given as aforesaid,the bonds so called for redemption shall, on th�date for redemption set forth in such call for redemption, become due and payable together with interest to such redemption date. Interest sha11 cease to be paid thereon after such redemption date. � 5. Denominations,Numbers and Letters. The Bonds maturing in each year shall be issued as fully registered bonds in denominations of$5,000 or any integral multiple thereof. The Bonds shall be numbered separately and consecutively upward with the letter "R"prefixed thereto,and shall be transferable and exchangeable as provided herein. 2692804.1 038723 CLD 6. Book-Entrv Svstem. It is expected that the Bonds when issued sha11 be (i) registered in the name of Cede & Co., as nominee of The Depository Trust Company, 55 Water Street, New York, New York ("DTC"), and (ii) deposited with DTC to be held in trust until maiurity. Only one Bond will be initially issued for each maturity in the aggregate principal amount of such maturity. DTC is an automated depository for securities and clearinghouse for securities transactions, and will be responsible for establishing and maintaining a book-entry system for recording the ownership interests of its participants,which include certain banks,trust companies and securities dealers, and the transfers of the interests among its participants. The DTC participants will be responsible for establishing and maintaining records with respect to the beneficial ownership interests of individual purchasers in the Bonds. Individual purchases of beneficial ownership interests in the Bonds may only be made through book entries (without --- certificates issued by the Town) made on the books and records of DTC (or a successor — depository) and its participants, in denominations of $5,000 or integral multiples thereof. Beneficial owners of the Bonds will not receive certificates representing theix respective interests in the Bonds. Principal of and interest on the Bonds will be payable by the Town or its agent by wire transfer or,in clearinghouse funds to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The Town will not be responsible or liable for payments by DTC to its participants or by DTC participants to beneficial owners or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. Upon request of the successful bidder,the Bonds may be issued as registered non-book-entry bonds,registered in the name of the successful bidder. � 2692804 1 038723 CLD 7. Discontinuance of Book-Entrv S._„ s'�tem. In the event that (a) DTC determines to discontinue providing its service with respect to the Bonds by giving notice to the Town and , discharging its responsibilities with respect thereto under applicable law, and the Town fails to appoint a successor securities depository for the Bonds, or (b) the Town determines to discont'inue the system of book-entry iransfers through DTC (or a successor securities � depository),then bond'certificates shall be delivered to the beneficial owners upon registration of the Bonds held in the beneficial owners' names. After such registration the beneficial owners shall become the registered owners of the Bonds. In such event, the Supervisor of the Town shall execute a Supplemental Certificate of Determination which will set forth the terms, form , and details of issuance of such bond cerlificates. 8. Fiscal A�ent. The Town Clerk is hereby appointed as Fiscal Agent for the Bonds pursuant to, and to act in accordance with, applicable provisions of the Local Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of New York. In the eve�t that the book-entry system described in Section 6 above is discontinued,the Town may appoint a banlc or trust company located and authorized to do business in New York State to act as successor Fiscal Agent in connection with the issuance of bond certificates. 9. Execution of Bonds. The Bonds shall be executed in the name of the Town by the manual signature of the Supervisor, and shall have the corporate seal of the Town, or a facsimile thereof, �xed, imprinted, engraved or otherwise reproduced thereon and attested by the manual signature of the Town Clerk. � 10. Transfer of Bonds. Each Bond shall be transferable only upon the books of the Town, which shall be kept for such purpose at the office of the Fiscal Agent, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender 2692804.1 038723 CLD thereof together with a written instrument of transfer satisfactory to the Fiscal Agent duly executed by the registered owner or his duly authorized attorney. Upon transfer of any such Bond, the Town shall issue in the name of the transferee a new Bond or Bonds of the same aggregate principal amount and maturity as the swrrendered Bond. The Town and the Fiscal Agent may deem and treat the person in whose name any Bond shall be registered upon the books of the Town as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made ta any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Town nor the Fiscal Agent shall be affected by any notice to the contrary. �— 11. Regulations With Respect to Exchan�es and Transfers. In all cases in which the privilege of exchanging or transferring Bonds is exercised, the Town shall execute and the Fiscal Agent shall deliver Bonds in accordance with the provisions hereof. All Bonds surrendered in any such exchanges or transfers shall forthwi.th be cancelled by the Fiscal Agent. For every such exchange or transfer of Bonds,the Town or,the Fiscal Agent may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, and may charge a sum sufficient to pay the cost of preparing each new Bond issued upon such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The Town shall not be obliged to make any such exchange or transfer of Bonds between the last day of the month preceding an interest payment date and such interest payment date. � 2692804.1 038723 CLD 12. Sale of Bonds. The Bonds shall be sold upon proposals to be received by the undersigned Supervisor on Tuesday, August 16, 2016, at 11:00 o'clock A.M. (Prevailing Time), at the offices of Munista.t Services,Inc., 12 Roosevelt Avenue, Port Jefferson Station,New York, via iPreo's Parity Electronic Bid�Submission System ("Parity") or by facsimile transmission, pursuant to the terms set forth in the Notice of Sale, in substantially the form as provided in Appendig A. The Bonds shall be delivered to the purchaser thereof on or about August 2�, 2016, upon receipt by the Town of�the purchase price therefor in Federal Funds, and deposit of . the Bonds with DTC to be held in trust until maturiiy. 13. Form of Bonds. Said Bonds shall be in substantially the form set forth in Appendix B hereto. 14. SEC Rule 15c2-12. In order to assist bidders in complying with Rule 15c2-12 promulgated by the Securities and Exchange Commission and as part of the Town's contractual obligation arising from its acceptance of the snccessful bidder's proposal,at the time of the delivery of the Bonds the Town will provide an executed copy of its "Undertaking to Provide Continuing Disclosure" in substantially the form set forth in Appendig C hereto. Said Undertaking will constitute a written agreement or contract of the Town for the benefit of holders of and owners of beneficial interests in the Bonds,to provide to the Electxonic Municipal 1blarket Access ("EMMA") System implemented by the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934, or any successor thereto or to the functions of such Board contemplated by the Undertaking, the annual financial information and timely notice of the occurrence of certain events, as enumerated in said Rule lSc2-12. 2692804.1 038723 CLD I HEREBY FURTHER CERTIFY that the powers and duties delegated to me to issue and sell the Bonds hereinabove described and referred to are in full force and effect and have not been modified, amended or revoked. 1N WITNESS WHEREOF, I have hereunto set my hand as of the 2°d day of August,2016. Supervisor � 2692804.1 038723 CLD CLERK'S CERTIFICATE I, Elizabeth A. Neville, Town Clerk of the Town of Southold, in the County of Suffolk, New York, HEREBY CERTIFY that I have compared the foregoing copy of the Certifzcate of Determination executed by the Supervisor and the same is a true and complete copy of the Certificate filed with said Town in my office as Town Clerk; and - I FURTHER CER'ITFY that no resolution electing to reassume any of the powers or duties mentioned in said Certificate and delegated to the Supervisor by the resolutions cited in said Certificate has been adopted by said Town Board. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said Town this �day of August,2016. ' t (SEAL) ` , Town Clerk 2692804.1 038723 CLD TOWN OF SOUTHOLD,NEW YORK SCHEDULE I PUBLIC IMPROVEMENT SERIAL BONDS-2016 DateofAuthonzahon 7/17�2007 6f21R011 6/17/2014 6/1T2014 9/]0R013 9/]02013 6/3D2015 5/12015 Date fvnended 12/12015 12/1CZ015 Same Resolution , Atnount Authonzed 30,000 185,000 800,000 3,700,000 3,700,000 510,000 250,000 Date of F'ust Bortowing 8/28/2014 8tZ82014 8/28/2014 8/26I2016 8l27/2015 8/17/Z015 Purpose Orient By Tiighway Highway Bay H�ghway Highway Wmdrow Pike St The Sea Equipment Dump Avenue Fac�lity Pacility Ttuner � Parkmg Roads Tmck Bridge ImprovemenlsImprovements Lot Fund DB7 DB DB DB A A SR A TOTAL Penod of Use(Yesrs) 15 20 25 25 15 10 BOND Amount m 2015 SANs 6,000 39,000 147,000 7b0,000 1,088,000 0 510,000 250,000 2,800,000 Ta Pay in 2016 3,000 39,000 37,000 42,000 I50,000 0 312,000 66,000 649,000 Amount to Bonds 3,000 0 I10,000 718,000 938,000 2,462,000 198,000 , 184,000 4,613,000 Due August 15 2017 3,000 15,000 38,000 53,000 132,OD0 18,000 29,000 288,000 201 S 15,000 40,000 SO,Q00 135,000 20,000 25,000 285,000 2019' I5,000 40,000 50,000 135,000 20,000 25,000 285,000 2020 ]5,000 40,000 50,000 135,000 20,000 25,000 285,000 2021 ]5,000 40,000 SD,000 135,000 20,000 25,000 285,U00 2022 75,000 40,000 50,000 135,000 20,000 25,000 285,000 2023 15,000 40,OD0 , 50,000 135,000 20,000 30,000 290,000 2024 5,000 40,000 SD,000 ]35,000 20,000 , 250,DOD 2025 40,000 50,000 135,000 20,000 245,000 2026 40,000 50,000 135,000 20,000 245,OQ0 2027 - 40,000 50,000 135,000 225,000 ' 2028 40,000 SS,OOD 140,000 235,IN)0 2029 40,000 55,000 140,000 235,OD0 2030 40,000 55,000 140,000 Z35,OOQ 2031 40,000 55,000 140,000 235,000 . , 2032 40,000 SS,ODU 140,000 - Z35,000 2033 40,000 55,000 140,000 235,000 2034 40,000 55,000 140,D00 235,000 3,000 0 I10,00D 718,000 938,000 2,462,000 198,000 184,000 4,673,000 Mwustat Sernces,Inc. 57616 APPENDIX A TOWN OF SOUTHOLD, IN THE COUNTY OF SUFFOLK,NEW YORK NOTICE OF$4,613,000*BO1�TI?SALE PROPOSALS will be received by the Supervisor, Town of Southold,New York, at the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Sta.tion,New York (Telephone No. 631-331-8888, Fax No. 631-331-8834) on Tuesday, August 16, 2016, until 11:00 o'clock A.M. (Prevailing Time), via iPreo's Parity Electronic Bid Submission System ("Parity") or by facsimile transmission, at which time they will be publicly opened and announced, for the purchase of�4,613,000* PUSLIC IMPROVEMENT SERTAL BONDS- 2016 (the "Bonds") due on August 15, in the annual principal installments as shown below which, together with interest thereon, are expected to provide for substantially level or declining annual debt service. $288,000 in the year 2017 $245,000 in the year 2026 285,�00 in the year 2018 � 225,000 in the year 2027 285,000 in the year 2019 235,000 in the year 2028 " . 285,000 in the year 2020 235,000 in the year 2029 285,000 in the year 2021 235,000 in the year 2030 — 285,000 in the year 2022 — 235,000 in the year 2031 -- 290,000 in the year 2023 2.35,000 in the year 2032 250,000 in the year 2024 235,000 in the year 2033 - 245,000 in the yeax 2025 235,000 in the year 2034 `The aggregate par amount of Bonds may be decreased in an amount not in excess of the premium offered by the successful bidder and the amount of each annual maturity, as set forth herein, rnay be adjusled to the extent necessary, in order that the total proceeds, which . include the total par amount of the Bonds plus the original issue premiurn, if any, received by the Town does not exceed the maximum amount permitted under applicable provisions of the �Internal Revenue Code of�986, as amended. Such adjustments will be made w�thin twenry- four (24) hours following ihe opening of the bids. The successful bidder may neither withdraw nor modify its bid as a result of any such post-bid adjustment. Any such adjustment shall be conclusive, and shall be binding upon the successful birlder. The Bonds of each maturity, as adjusted, will bear interest at the same rate and must have the same initial reoff ering yields as specified for that maturity by the successful bidder for the Bonds. �'t is the intent of this provision to hold constant, on a per bond basis, the successful bidder's average underwriting spread. However, the award will be made to the bidder whose bid produces the lowest net interest cost, calculated as specified below,solely on the basis of the Bonds offered, without taking into account any adjusttreent in the amount of Bonds pursuant to this paragraph. 'Preliminary,subject to change 2692804 1038723 CLD The Town reserves the right to change the time and/or date for the opening of� prvposals. Notice of any such change shall be provided not less than one (1) hour prior to the time set forth above for the opening of proposals by means of a supplemental notice of sale to be� transmitted over the Thompson Municipal News Wire or TM3. The Bonds will be dated their date of delivery,which is expected to be August 25, 2016 (the "Dated Date"), and will bear interest at the rate or rates per annum specifi�d by the successful bidder therefor in accordance herewith, payable semiannually February 15, 2017, August 15, 2017, and semiannually thereafter on February 15 and August 15 in each year to maturity. 'The Bonds maturing on or before August 15, 2024 wi11 not be subject to redemption prior to maturity. The Bonds maturing on August 15, 2025 and thereafter, will be subject to redennption, at the option of the Town,prior to maturiTy, in whoie or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), on any date on or after August 15, 2024, at par plus accrued interest to the date of redemption. The Town may select the maturities of the Bonds to be redeemed and the amount to be redeemed of each maturity selected, as the Town shall determine to be in the best interest of the Town at the time of such redemption. If less than a11 of the Bonds of any maturity are to be redeemed prior to maturity, the particular Bonds of such maturity to be redeemed shall be selected by the Town by lot in any customary manner of selection as determined by the Town — Notice of such ca11 for redemption shall be given by rriailing such notice to the registered owner -- � at least thirty (30) days prior to the date set for such redemption. Notice of redemption having been given as aforesaid, the bonds so called for redemption shall, on the date for redemption set forth in such call for redemption, become due and payable together with interest to such redemption date.Interest shall cease to be paid thereon after such redemption date. Each proposal must be a bid of not less than $4,613,000 for all of the Bonds and must state in a multiple of one-hundredth of�1% or a multiple of one-eighth of 1%, the rate or rates of interest per annum which the Bonds are to bear and may state different rates of interest_ for Bonds.m�aturing in .different calendar years; provided, however, that (i) only one rate of interest may be bid for all Bonds maturing in any one calendar year,and(ii)variations in rates of interest so bid shall be in ascending progression in order of maturity so that the rate of interest ori Bonds maturing in any particular calendar year shall not be less than the rate of interest applicable to Bonds maturing in any prior calendar year. As a condition precedent to the consideration of his proposal, a good faith deposit (the"Deposit")in the amount of$46,130 is required for each bid to be considered. Such Deposit may be in the form of: (i) a certified or cashier's check payable to the order of "Town of Southold,New York,"or(ii)a wire transfer in accordance with instructions,set forth herein. If a wire transfer is used, it must be sent to the account so designated by the Town for such purpose, not later than 10:00 A.M. on the date of the sale; however, the Town reserves the right to award the Bonds to a successful bidder whose wire transfer is initiated but not received by such time provided that such successful bidder's fed wire reference number has been received. A wire reference number must be provided when the bid is submitted. Bidders must contact Munistat � Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York 11776, telephone No. . 2692804.1 038723 CLD 631-331-8888, the Town's Financial Advisor, no later than 24 hours prior to the bid opening to obtain'the Town's wire instructions. The Town shall not incur any liability from delays qf or interruptions in the receipt of tlie Taeposit by fed wire or return of the Deposit to any unsuccessful bidder. Under no circumstances shall interest accrue on the Deposit occasioned by a delay_in the return of the Deposit to any unsuccessful bidder. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. Proposals may be submitted electronically via Parity or via facsimile transmission at (631) 331-8834, in accordance with this Notice of Sale, until the time specified herein. No other forni of electronic bidding services nor telephone proposals will be accepted. No proposal will be accepted after the time for receiving proposals specified above. Bidders submitting � proposals via facsimile must use the "Proposal for Bonds" form attached hereto. Once the , proposals are communicated electronically via Parity or via facsimile to the Town, each bid will constitute an irrevocable offer to purchase the Bonds pursuant to the terms therein provided. Prospective bidders wishing to submit an electronic bid via Parity must be contracted customers of Parity. Prospective bidders who do not have a contract with Parity must � ca11 (212) 849-5021 to become a customer. By submitting an electronic bid for the Bonds, a bidder represents and warrants to the Town that such bidder's bid for the purchase of the Bonds is submitted for and on behalf of such prospective bidder by an officer or agent who is duly authorized to bind the bidder to a legal, valid and enforceable contract for the purchase of the Bonds. � Each prospective bidder who wishes to submit electronic bids shall be solely responsible to register to bid via Parity. Each qualified prospective bidder shall be solely responsible to make necessary arrangements to access Parity for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Notice of Sale. Neither the Town nor Parity shall have any duty or obligation to undertalce such registration to bid for any prospective bidder or to provide or assure such access to any qualified prospective bid'der, and neither the Town nor Parity shall be responsible for a bidder's failure to register to bid or for proper operation of, or have any liability for any delays or interruptions of, or any damages caused by Parity. The Town is using Parity as a communications mechanism, and not as the Town's agent, to conduct the electronic bidding for the Town's Bonds. The Town is not bound by any advice or determination of Parity as to whether any bid complies with the terms of this � Notice of Sale. All costs and expenses incurred by prospective bidders in connection with their registration and submission of bids via Parity are the sole responsibility of the bidders, and the Town is not responsible, directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any difficulty in registering to bid, or submitting or modifying a bid for the Bonds, it should telephone Parity and notify the Town's Financial Advisor, Munistat Services Inc. at 631-331-8888 (provided that the Town shall have no obligation to take any action whatsoever upon receipt of such notice). If any provisions of this Notice of Sale shall conflict with information provided by Parity, as approved provider of electronic bidding services, this Notice of Sale shall control. Further information about Parity, including any fee charged, may be obtained from Parity at (212) 849-5021. The time maintained by Parity shall constitute the official time with respect to all bids submitted. 2692804.1 038723 CLD The Bonds will be issued in the form of fully registexed Bonds, in denominations conesponding to the aggregate principal amounts due in each year of maturiiy. It is expected that the successful bidder will cause such Bond certificates to be (i) registered in the name of Cede & Co., as nominee of The Depository Trust Company, SS Water Street, New Yoxk, New York ("DTC"), and (ii) deposited with DTC to be held in trust until maturity. DTC is an automated depository for securities and clearinghouse for securities transactions, and will be ' responsible for establishing and maintaiiung a book-entry system for recoxding the ownership interests of its participants, which include certain banks, trust companies and securities dealers, and the transfers of the interests among its participants. The DTC participants will be responsible for establishing and maintaining records with respect to the beneficial ownership interests of individual purchasers in the $onds. Individual purchases of beneficial ownership interests in the Bonds may only be made through book entries(without certificates issued by the - Town)made on the books and records of DTC (or a successor depositozy) and its participants, in denominations of$5,000 or integral multiples thereof. Principal, of and interest on the Bonds will be payable by the Town or its agent by wire transfer or in clearinghouse funds'to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC;transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The Town will not be responsible or liable for payments by DTC to its participants or by DTC participants to beneficial owners or-for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such paxticipants. Upon request of the successful bidder, the Bonds may be issued as registered r�on-book-entry bonds, registered in the name�of the successful bidder. The "Record Date" for the Bonds will be the close of�business on the last day of the month preceding each interest payment date. ' T'he Bonds will be awarded and sold to the bidder complying with the terms of sale and offering to purchase the Bonds at the lowest net interest cost, and if two or more such bidders offer the same lowest net interest cost, then to one of said bidders selected�by the Sale Officer by lot from among all said bidders. The successful bidder must also pay an amount equal to the interest on tfie Bonds, if any, accrued to the date of_payment of the purchase price. No interest will be allowed on the Deposit. Award of the Bonds will be made without taking into consideration any adjustment to be made to the principal amount of the Bonds described herein. When the successful bidder has been ascertained, the Sale Officer will promptly return all Deposits made to the persons making the same, except the Deposit made by the successful bidder. Award of the Bonds to the successful bidder, or rejection of all bids, is expected to be made promptly after opening of the bids, but the successful bidder may not withdraw his proposal until after 1:00 o'clock P.M. (Prevailing Time) of the day of such bid- opening and then only if such award has not been made prior to the withdrawal. The successful bidder will be promptly notified of the award to him, and if he refuses or neg�ects to pay the agreed price of the Bonds less the amount deposited by him,the amount deposited by hi'm shall be forfeited to and retained by the Town as liquidated damages for such neglect or refusal. 2692804.1 038723 CLD The Town reserves,the right to reject any and all bids (regardless of the interest rate bid),to reject any bid not complying with this official Notice of Sa,le and, so far as permitted by law,to waive any irregularity or informality with respect to any bid or the bidding process. If the Bonds qualify for issuance of any policy of municipal bond insurance or commitrnent therefor at the option of a bidder,the purchase of any such insurance policy or the issuance of any such commitment therefor shall be at the sole option and expense of�such bidder and any increased costs of issuance of the Bonds resulting by reason of the saame, unless otherwise paid, sha11 be paid by such bidder. Any failure of the Bonds to be so insured or of any such policy of insurance to be issued, shall not constitute cause for a failure or refusal by the purchaser of the Bonds to accept delivery of and pay for said Bonds in accordance with the terms hereof. The proceeds of the sale of the Bonds shall be used to finance various projects in and for the Town as described in the Prelixninary Official Statement, dated August 2, 2016, circulated in connection with the sale of the Bonds. 1'he Bonds sha11 be general obligations of the Town and sha11 contain a pledge of the faith and credit of the Town for the payment of the principal thereof and the interest thereon. The State Constitution requires the Town to pledge its faith and credit for the paynnent of the principal of the Bonds and the interest thereon and to make annual appropriations for the amounts required for the payment of such interest and the redemption of the Bonds. 'I'he State Constitution also provides that if at any time the appropriating authorities fail to make the required appropria�ions for the annual debt service on the Bonds and certain other obligations of the Town, a sufficient sum shall be set apa.�-t from tl:e first revenues thereafter:eceived and shall be applied for such purposes, and also that the fiscal officer of the Town may be required to set apart and apply such revenues as aforesaid at the suit of any holder of such obligations. For the payment of the principal of and interest on the Bonds, the Town has the power and statutory authorization to levy ad valorem taxes on a�l taxable real property in the Town, subject to certain statutory limitations imposed by Chapter 97 of the Laws of 2011, as amended(the"Tax Levy Limit Law"). See"Tag Levy Limit Law" in the Prelimiaiary Offcial Statement of the Town dated August �, �016 circulated in connection with the sale of the Bonds. The population of the Town is 22,154 according to 2014 U.S. Census estimates. The debt statement prepared as of August 2, 2016, shows the five year average full 'valuation of real property subject to taxation by the Town to be $9,449,625,973, its debt limit to be $661,473,818 and its total net indebtedness (exclusive of the Bonds) to be $33,676,000. The issuance of the Bonds will increase the total net indebtedness of the Town by$1,813,000. The Bonds wili be delivered to DTC and shall be paid for in Federal Funds on or about August 25, 2016, at such place in New York City, and on such business day and at such hour, as the Sale Officer shall fix on three business days' notice to the successful�bidder, or at such other place aud time as may be agreed upon with the successful bidder. The deposit of the Bonds with DTC under a book-entry system requires the assignment of CUSIP numbers prior to delivery. It shall be the responsibility of the successful bidder to obtain CUSIP numbers for the Bonds prior to delivery and the Town will not be responsible for any delay occasioned by the 2692804.1 038723 CLD inability to deposit the Bonds with DTC due to the failure of the successful bidder to obtaxn such - numbers and to supply them to the Town in a timely manner. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid for by the Town; provided,however,that the CUSIP Service Bureau charge for the assignment of saad numbers shall be the responsibility of azld shall be paid for by the successful bidder. The successful bidder will be furnished witliout cost with the approving opinion of the law firm of Hawkins Delafield & Wood LLP ("Bond Counsel") substantially as set forth in Appendix C to the Pxeliminary Official Sta.tement circulated in connection with the sale of the $onds. T'he successful bidder may at its option refuse to accept the Bonds if prior to their delivery the opinion of Bond Counsel is not delivered or if any income tax law of the United States of America is hereafter enacted which shall provide that the interest thereon is taxable, or shall be taxable at a future date, for federal income tax purposes, and in such case the deposit made by it will be retumed and it will be relieved of its contractual obligations arising from the acceptance of its proposal. The Internal Revenue Code of 1986, as amended(the"Code"), establishes certain � ongoing requirements that must be met subsequent to the issuance and delivery of the Bonds in order that interest on the Bonds be and remain excludable from gross income under Section 103 of the Code. Concurrently with the delivery of the Bonds, the Town will execute a Tax Certificate, which will contain provisions and procedures relating to compliance with the requirements of the Code and a certification to the effect that the Town will comply with the provisions and procedures set forth tlzerein and that it will do and perform all acts and things necessary or desirable to assure that interest paid on the Bonds is excludable from gross income under Section 103 of the Code. Upon delivery of the Bonds,Bond Counsel will deliver an opinion that states that, � under existing statutes and court decisions and assuming continuing compliance with the provisions and procedures set forth in the Tax Certificate, (i) interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Code; and(ii) iYiterest �n the Bonds is not treated as a preference item in calculating the altemative minimum tax imposed on individuals and corporations under the Code; such interest, however, is inclnded in the adjusted current eamings of certain corporations for purposes of calculating the alternative mdnimum tax imposed on such corporations. In addition,the opinion of Bond Counsel will state that,under existing statutes, interest on the Bonds is exempt from personal income taxes of New York State and its political subdivisions, including The City of New York. The Town will not designate the Bonds as "qualified tax-exempt obligations" pursuant to the provisions of Section 265 of the Code. The winning bidder(s) shall, within one (1)hour after being notified of the award of the Bonds, advise the Financial Advisor by electronic transmission or writing by facsimile transmission of the initial public offering price of the Bonds. Each successful bidder also must submit to the Town a certificate (the "Reoffering Price Certificate"), satisfactory to Bond Counsel,prior to the delivery of the Bonds that states,among other things,that: 2692804.1 038723 CLD (a)(i) on the date of award, such successful bidder made a bona fide public offering of the Bonds purchased by such successful bidder at initial offering prices or yields corresponding to the prices or yields indicated in the information furnished in connection with the successful bid, and(ii)as of such date,the first price or yield at which an amount equal to at least ten percent(10%)of Bonds purchased by such successful bidder was sold to the public was, xespectively, a price not highez or a yield not lower than indicated in the information furnished with the successful bid (the "first price rule"), unless such certificate contains an explanation as to the reasons why the first price rule was not satisfied, OR (b) such successful bidder has purchased the Bonds for its own account and not with a view to distribution or resale and not in the capacity of a bond house, broker or other intermediary,and the price or prices at which such purchase was made. . For the purposes of the Reoffering Price Certificate,the"public"does not include � bond houses, brokers or similar persons or organi.zations acting in the capacity of underwriters or wholesalers. In making such representations,the successful bidder must reflect the effect on the offering prices of any "derivative products" (e.g., a tender option) used by the bidder in connection with the initial sale of any of the Bonds. - The Preliminary Official Statement is in a form "deemed fmal" by the Town for the purpose of Securities and Exchange Commission Rule lSc2-12 but may be modified or supplemented as noted above. In order to assist bidders in complying with Rule 15c2-12 and as part of the Town's contractual obligation azising from its acceptance of the successful bidder's proposal, at the time of the delivery of the Bonds the Town will provide an executed copy of its "ITndert�aking to Provide Continuing Disclos�zre" (the "Ur_dertaking"). The form of Un�ertaking is set forth as Appendix D in the Preliminary Official Sta.tement. Other than as set forth in the Pzelixninary Official Statement dated August 2,. 2016, the Town is in compliance in all material respects with all previous undertakings made pursuant to Rule 15c2-12 during each of the past five years. The Town will provide a reasonable number of OfFcial Stafements to the successful bidder withun five (5} Uusiness days following receipt of a written reyuest therefor made to the Town and its financial advisor. Such request may specify ihe applicable(a) offering price(s), (b} selling compensation, (c) rating(s), (d) credit enhancement and (e) identity and complete name of such bidder and any participating underwriters, and if so, the Official � Staxement will be modified or supplemented by the information so specified. Neither the Town nor its financial advisor shall be liable in any rnanner for any delay, inaccuracy, or omission on the part of the successful bidder with respect to such reyuest, nor sha11 the Town's failure, as a result thereof, to provide the Official Statement (whether or not modified or supplemented) within the above time period, constitute cause for a failure or refusal by such bidder to accept delivery of and pay for the Bonds in accordance with the tenms hereof , The obligation hexeunder to deliver or accept the Bonds pursuant hereto shall be conditioned on the availabiliiy to the successful bidder and delivery at the time of delivery of the Bonds of said approving opinion; of certificates in form and tenor satisfactory�to said law firm evidencing the proper execution and delivery of the Bonds and receipt of payment therefor and including a statement,dated as of the date of such delivery,to the effect that there is no litigation 2692804.1 038723 CLD pending or threatened relating to the Bonds; and of the several certificates as described in the Official Statement under the heading "Documents Accompanying Delivery of the Bonds." A copy of said approving opinion will appear on the Bonds. Copies of the Notice of Sale and the Official Statement are available in electronic fdrmat on the website of the Town's financial advisor, Munistat Services, Inc. ("www.munistat.com") or may be obtained upon request from the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York 11776, telephone number (631) 331-8888. - l�ated: August 2,2016 SCOTT A. RUSSELL Supervisor and Chief Fiscal Officer 2692804.1 038723 CLD PROPOSAL FOR BONDS August 2,2016 Hon.Scott A.Russell Supervisor Town of Southold,New York c/o Munistat Services,Inc. 12 Roosevelt Avenue Port 7efferson Siation,New York Dear Mr.Russell: Subject to the provisions and in accordance with the tertns of the annexed Notice of Sale dated August 16,2016,which is hereby made a part of this Proposal,we offer to purchase all of the$4,613,000`Public Improvement Serial Bonds-20]6 of the Town of Southold, in the County of Suffolk, New York, described in said Notice of Sale, and to pay therefor the price of $4,613,000 plus$ ,plus interest,if any,accrued on said Bonds from their date to the date of their ' delivery,provided that the Bonds maturing in the several years set forth below shall bear interest from their date until maturity at the respective rates per annum stated in the following table: Bonds maturing in the year 2017,at % Bonds maturing in the year 2026,at % Bonds maturing in the year 2018,at % Bonds maturing in the year 2027,at % Bonds maturing in the year 2019,at - % Bonds maturing in the year 2028,at % Bonds maturing in the yeaz 2020,at % Bonds maturing in the year 2029,at % Bonds maturing in the year 2021,at % Bonds mafuring in the year 2030,at % Bonds matwing in the year 2022,at�__% Bonds maturing in the year 2031,at % Bonds maturing in the year 2023,at % Bonds maturing in the yeaz 2032,at % Bonds maturing in the year 2024,at % Bonds maturing in the year 2023,at % �— � Bonds maturing in the year 2025,at % Bonds maturing in the year 2034,at % f Deposit Requirement—Please check one of the following: We enclose herewith a certified or cashier's check in the sum of$46,130, made payable to the order of the Town of Southold,New York. We sent a fed wire transfer of$46,130 to the account of the Town designated for such purpose in accordance with the Notice of Sale and instructions provided by the Town's Financial Advisor. The fed wire confirmation number is at The Deposit will be returned to the undersigned if the bid is not accepted. If this bid is accepted said Deposit will be applied as part payment for the Bonds or retained by the Town as and for liyuidated damages m case the undersigned should not take up and pay for the Bonds in accordance with the terms of this Proposal. The following is our computation of the net interest cost,made ss provided in the above-mentioned NoHce of Sale,but not constituting any part of the foregoing Proposal for the purchase of$46,130 bonds under the foregoing Proposal: Grosslnterest................................•-•............................................................� Less Premium Bid Over Par.........................................................................$ NetInterest Cost.........................................................................................$ Net lnterest Rate....•••••-•••.......................... ............................ % ...................... (four decimals) By: Retum of the Deposit on August 16, 2016, in the Firm Name: amount of$46,130.00 from the Town of Southold, Telephone: - - New York,is hereby acknowledged: Facsirnile: - Email: �Preliminary,subject to change 2692804.1 038723 CLD APPENDIX B REGISTERED REGISTEREp NQ. R- � ITNITED STATES OF AMERICA STATE OF NEW YORK � COUNTY OF SUFFOLK TOWN OF SOUTHOLD PUBLIC IMPROVEMENT SERIAL BOND-2016 MATiJRITY DATE INTEREST DATE OF ORIGINAL CUSIP RATE ISSi7E NUMBER August 15, % August 25,2016 REGISTERED OWNER: CEDE & CO. I'12.iNCIPAL SIJIVI: DOLLARS The TOWN OF SOUTIiOLD,in the County of Suffolk,a municipal corporation of the State of New York, hereby acknowledges itself indebted and for value received promises to pay to the REGISTERED OWNER named above, or registered assigns, on the MATURITY DATE (stated above), the PRINCIPAL 5UM (stated above) upon presentation and surrender of this bond at the office of the Town Clerk, Town of Southold, 53095 Main-Road, PO Box 1179, Southold,New York, as fiscal agent(herein called"Fiscal Agent"),or any successor thereto, and to pay interest on such principal sum from August 25, 2016 or from the most recent interest payment date to which intecest has been paid at the INTEREST RATE (stated above), payable semianzivally February 15, 2017, August 15, 2017, and semiannually thereafter on February 15 and August 15 in each year to maturity. Interest hereon shall be payabie by wire transfer or clearinghouse funds by the Town or its agent on each interest payment date to the registered owner hereof at his address as it appears on the registration books of the Town maintained by the Fiscal Agent or at such other address as may be furnished in writing by such registered owner to the Fiscal Agent as of the close of business on the last day of the rnonth preceding each interest payment'date. The principal of and interest on this bond are payable in any coin or currency of the United States of America which, at the date of payment, is legal tender for the payment of public and private debts; provided, however, that interest on this fully registered bond shall be paid by wire transfer or clearinghouse funds as set forth above. REFERENCE IS MADE TO TI-iE FURTHER PROVISIONS 4F THIS BOND SET FORTH HEREIN. 2692804.1 038723 CLD The faith and credit of such Town are hereby irrevocably pledged to the punctual payment of the principal of and interest on this bond according to its terms. It is hereby certified and recited that all conditions,acts and things required by the Constiiution and statutes of the Sta,te of New York to exist, to have happened and to have been performed precedent to and in the issuance of tlais bond, exist, have happened and have been ' performed, and that the issue of bonds of which tlus is one, together with all other indeb'tedness of the Town of Southold, is within every debt and other limit prescribed by the Constitution and laws of such State. IN WITNESS WHEREOF, the Town of Southold has caused this bond to be executed.in its name by the manual signature of its Supervisor and its corporate seal to be impressed hereon and attested by the manual signature of its Town Clerk. . TOWN OF SOUTHOLD , (SEAL) By - Supervisor ATTEST: � Town Clerk 2692804.1 038723 CLD Town of Southold,New York Public Improvement Serial Bond-2016 . This bond is one of an authorized issue, the aggregate principal amount of which is $4,613,000, the bonds of which are of like tenor, except as to number, denomination, interest rate and maturity, and is issued pursuant to the provisions of the Loca1 Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of New York (the "Law"), vazious bond resolutions duly adopted by the Town Boaz�d on their respective dates, authorizing the issuance of bonds of the Town to finance various capital improvements in and for the Town, and the Certificate of Determination executed by the Supervisor as of August 2, 2016, determining the terms, form and details of issuance of said $4,613,000 serial bonds (the "Bonds") and providing for the public sale thereof,(the"Certificate of 1Determination"). The Bonds are issuable in the form of registered bonds without coupons in denominations of$5,000,or any integral multiple thereof. This Bond is transferable or exchangeable, as provided in the Certificate of � Determi.nation, only upon the books of the Town kept for that purpose at the office of the Fiscal Agent, by the registered owner hereof in person, or by his attorney duly authorized in writing, upon the surrender of this Bond together with a written instrument of transfer or exchange satisfactory to the Fiscal Agent duly executed by the registered owner or his attorney duly � authorized in writing, and thereupon a new Bond or Bonds, in the� same aggregate principal amount and of the same maturity, sha11 be issued to the transferee or the registered owner in exchange therefor as provided in the Certificate of Determination and upon the payment of the charges,if any,therein prescribed. The Bonds maturing on or before August 15, 2024 will not be subj ect to redemption prior to maturiTy. The Bonds maturing on August 15, 2025 and thereafter, will be subject to redemption, at the option of the Town, prior to maturity, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity(selected by lot within a maturity), on any date on or after t��ugust 15, 2024, at par plus accrued interest to the date of redemption. 1Votice of such ca11 for redemption shali be given by mailing such notice to the registered owner at least thirty (30) days prior to the date set for such redemption. Notice of redemption having been given as aforesaid, the bonds so called for redemption shall, on the date for redemption set forth in such call for redemption, become due and payable together with interest to such redemption date. Interest shall cease to be paid thereon after such redemption date. 2692804.1 038723 CLD August 25,2016 The Town Board of the Town of Southold, in the Cotulty of Suffolk,New York Ladies and Gentlemen: We have acted as Bond Counsel to the Town of Southold (the "Town"), Suffolk County, New York, a municipal corpora.tion of the State of New York, in connection with the $4,613,000 Public Improvement Serial Bonds-2016 (the "Bonds"), dated and delivered on the date heieof, and have examined a record of proceedings relating to the authorization, sale and issuance of the Bonds. � In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformiiy with originals of all documents submitted to us as copies thereof. t Based on and subject to the foregoing, and in reliance thereon, as of the date herebf, we are of the following opinion�: 1. The Bonds aze valid and legally binding general obligations of the Town for which the Town has validly pledged its faith and credit and, unless paid from other sources, all the taxable real property within the Town is subject to the levy of ad valorem real estate taxes to pay the Bonds and interest thereon, subject to certain statutory Iimitations imposed by Chapter 97 of the Laws of 2011, as amended. The enforceability of rights or remedies with respect to such Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights or remedies heretofore ox hereafter enacted. 2. Under existing statutes and court decisions and assuming continuing compliance with certain tax certifications described herein, (i) interest on the Bonds is excluded from goss income for federal income tax purposes pursuant to Section 103 of the Internal - Revenue Code of 1986, as amended (the "Code"), and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest,however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative minimum tax imposed on such corporations. The Code establishes certain requirements which must be met subsequent to the issuance of the Bonds in order that the interest on the Bonds be and remain excluded from gross income for federal income tax purposes under Section 103 of the Code. These requirements include, but are not limited to, requirements relating to the use and expenditure of proceeds of the Bonds, restrictions on the investrnent of proceeds of the Bonds prior to expenditure and the 2692804.1038723 CLD - requirement that certain earnings be rebated to the federal government. Noncompliance with such requirements may cause the interest on the,Bonds to become subject to federal income taxation retroactive to the date of issuance thereof, irrespective of the date on which such noncompliance occurs or is ascertained. On the date of issuance of the Bonds, the Town will execute a Tax Certificate relating to the Bonds containing provisions and procedwes pursuant to which such requirements can be satisfied. In executing the Tax Certificate, the Town represents that it will comply with the provisions and procedures set forth therein and that it will do and perform all acts and th�ngs � necessary or desirable to assure that the interest on the Bonds will, for federal income tax purposes,be excluded from gross income. In rendering the opinion in this paragraph 2, we have relied upon and assumed (i) the material accuracy of the Town's -representations, statements of intention and reasonable expectations, and certifications of fact contained'in the Tax Certificate with respect to matters affecting the status of the interest on the Bonds, and (u) compliance by the Town with the procedures and representations set forth in the Tax Certificate as to such tax matters. 3. Under existing statutes, interest on the Bonds is exempt fr'om personal income taxes of New York State and its political subdivisions,including The City of New York. Exoept as stated in paragraphs 2 and 3 above, we express no opinion regarding _ any other federal, state or local tax consequences with respect to the Bonds or the ownership or disposition thereof. Further,we express no opinion herein�as to the effect of any action hereafter taken or not taken in reliance upon an opinion of other counsel on the exclusion from gross income for federal income tax purposes of interest on the Bonds,or under state and local tax law. We render our opinion under existing statutes and court decisions as of the date of issuance of the Bonds, and we assume no obligation to update, revise or supplement this opinion after the issue date to zeflect any action hereafter taken or not taken, or any facts or circumstances, or any change in law or in interpretations thereof,or otherwise,that may hereafter arise or occur,or for any other reason. We g'ive no assurances as to the adequacy, sufficiency or completeness of the Preliminary or Final Official Statement or any proceedings, reports, correspondence, financial statements or other documents, containing financial or other information relative to the Town, which have been or may hereafter be furnished or disclosed to purchasers of ownership interests in the Bonds. Very truly yours, 2692804.1 038723 CLD ASSIGNMENT FOR VALUE RECENED,the Undersigned hereby sells, assigns and transfers unto . PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIF'YIl�G NUMBER OF ASSIGNEE � PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE the within Bond and does hereby irrevocably constitute and appoint Attorney to transfer said Bond on the books kept for registration of said Bond, with full power of substitution in the premises. , Dated: ' _ Signature Guaranteed: Notice: Signature(s) must be acknowledged Notice: The signature to this assignment must or proved, or in the altemative, certified as correspond with the naxne as it appears upon the to its genuineness by an officer of a bank or face of the witivin bond in, every particular, trust company located and authorized to do without alteration or enlargement or any change business in New York State. whatever - 2692804.1 038723 CLD APPENDIX C UNDERTAHING TO PROVIDE COI�TTINUING DYSCLOSURE Section 1. Definitions "Aiuival Information"shall mea.n the information specified in Section 3 hereof. "EMMA" shall •mean the Electronic Municipal Market Access System implemented by the MSRB. ' "GAAP" shall mean generally accepted accounting principles as in effect from , time to time in the United States. "Holder" shall meari any registered owner of the Securities and any beneficial owner of Securities within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934. "Issuer" sha11 mean the Town of Southold,in the County of Suffolk, a municipal corporation of the State of New York. "MSRB" shall mean the Municipal Securities Rulemaking Board established in � accordance with the provisions of Section 15B(b)(1) of the Securities Exchange Act of 1934, oc _ any successor thereto or to the functions o£-the MSRB contemplated by this Agreement. __ "Purchas�r" shall mean the fmancial institution referred to in the Certificate of Award, executed by the Supervisor as of August 16, 2016. "Rule" shall mean Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 CFR Part 240, §240.15c2-12), as amended, as in effect on the date of this Undertaking, including any official interpretations thereof issued either before or after the effective date of this Undertaking which are applicable to this Undertaking. "Securities" shall mean the Issuer's $4,613,000 Public Improvement Serial Bonds-2016, dated August 25, 2016, maturing in various principal amounts on August 15 in each of the years 2017 to 2031,inclusive,and delivered on the date hereof. Section 2. Obli�ation to Provide Continuin� Disclosure. (a) The Issuer hereby izndertakes, for the benefit of Holders of the Securities,to provide or cause to be provided either directly or through Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New � York,to the EMM11 System: (i) (A)no later than six months after the end of each fiscal year, commencing with the fiscal year ending December 31, 2016, the Annual Infonnation relating to such fiscal year, and (B) no later than six months after the end . of each fiscal year, commencing with the fiscal year ending December 31, 2015, the audited financial statements of the Issuer for each fiscal year, if audited financial statements are prepared by the Issuer and then available; provided, however,that if audited financial statements are not prepared or 2692804.1 038723 CLD ' are not then available, unaudited financial statements shall be provided and audited financial statements, if any, shall be delivered to the EMMA System within sixty(60) days after they become available and in no event later than one year after the end of the succeeding fiscal year; provided further, however, that the unaudited financial statement shall be provided for any fiscal year only if the Town has made a determination that providing such unaudited financial statement would be compliant with federal securities laws, including Rule lOb-5 of the Securities Exchange Act of 1934 and Rule 17(a)(2)of the Securities Act of 1933;and (ii) in a timely manner, not in excess of ten (10) business days after the occurrence of such event, notice of any of the following events with respect to the Securities: . (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers,or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices of determinations with respect to the tax status of the Securities, or other events affecting the tax status of the Securities; (7) modifications to rights of Securities holders,if material; (8) Bond calls,if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayrnent of the Securities,if material; - (11) rating changes; (12) bankruptcy,insolvency,receivership or similar event of the Issuer; Note to clause (12�: For the purposes of the event identified in clause (12)above,the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer in a proceeding under the U.S. Bankruptcy Code or in any 2692804.1 038723 CLD If ' other proceeding under state or federal law in which a court or � government authority has assumed jurisdiction over substantially all of � the assets or business of the Issuer, or if such jurisdiction has been 'i assumed by leaving the existing governing body and officials or � oi�icers in possession but subject to the supervision and orders of a � court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or � governmental authority having supervision or jurisdiction over I substantially all of the assets or business of the Issuer; , I (13) the consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a defuutive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions,other than pursuant to its terms,if material;and (14) appointment of a successor or additional trustee or the change of name of a trustee,if material. (iii) in a timely manner, not in excess of ten (10) business days after the occurrence of such event, notice of a failure to provide by the date set forth in Section 2(a)(i)hereof any Annual Infortnation required by Section -— 3 hereof. � (b) Nothing hexein shall be deemed to prevent the Issuer from disseminating any other information in addition to that required hereby in the manner set forth herein or in any other manner. If the Issuer disseminates any such additional information, the Issuer shall have no obligation to update such information or include it in any future materials disseminated hereunder. (c) Nothing herein sha11 be deemed to prevent the Issuer from providing , notice of the occurrence af certain athcr events, in additian to those listed above, i,f the Tssuer determines that any such other event is material with respect to the Securities;but the Issuer does not undertake to commit to provide any such notice of the occurrence of any event except those events listed above. Section 3. Aruival Information. (a) The required Annual Information shall consist of the fmancial information and operating data for the preceding fiscal year, in a fozm generally consistent with the information contained or cross-referenced in the Issuer's final official statement relating to the Securities under the headings: "The Town," "Economic and Demographic Information," "Indebtedness of the Town," "Finances of the Town," "Rea1 Property Tax Information"and"Litigation"and Appendix A. (b) All or any portion of the Annual Information may be incorporated in the Annual Information by cross reference to any other documents which are (i) available to the public on the EMMA System or (ii)filed with the SEC. If such a document is a final official statement,it also must be available from the EMMA System. � 2692804.1 038723 CLD (c) Annual Information for any fiscai year containing any modified operating data or financial information (as contemplated by Section 7(e) hereo� for such fiscal year shall explain, in narrative form, the reasons for such modification and the effect of such modification on the Annual Information being provided for such fiscal year. If a change in accounting principles is included in any such modification, such Annual Information shall present a comparison between the financial statements or information prepared on the basis of the modified accounting principles and those prepared on the basis of the former accounting principles. Section 4. Financial Statements. The Issuer's annual financial statements for each fiscal year, if prepared, shall be prepared in accordance with GA,AP or New York State regulatory requirements as in effect from time to time. Such financial statements, if prepared, shall be audited by an independent accounting firm. The Issuer's Annual Financial Report Update Document prepared by the Issuer and filed annually with New York State in accordance with applicable law,shall not be subject to the foregoing requirements. Section 5. Remedies. If the Issuer shall fail to comply with any provision of this Undertaking, then any Holder of Securities may enforce, for the equal benefit and pxotection of all Holders similarly situated, by mandamus or other suit or proceeding at law or in equity, this Undertaking against the Issuer and any of the officers, agents and employees of the Issuer, and may compel the Issuer or any such officers, agents or employees to perform and carry out their duties under this Undertaking; provided that the sole and exclusive remedy for breach of this Undertaking shall be an action to compel specific performance of the obligataons of the Issuer hereunder and no person or entiTy sha11 be entitled to recover monetary damages hereunder under a.ny circuinstances. Failure to comp!y with any provision of this iJndertaking sha11 not constitute an event of default on the Securities. Section 6. Parties in Interest. This Undertaking is executed to assist the Purchaser to comply with paragraph (b)(5) of the Rule and is delivered for the benefit of the Holders. No other person shall have any right to enforce the provisions hereof or any other rights hereunder. Section 7. Amendments. Without the consent of any holders of Securities, the Issuer at any tixne and from time to time may enter into any amendments or changes to this Undertaking for any of the following purposes: (a) to comply with or conform to any changes in Rule 15c2-12 (whether required or optional); (b) to add a dissemination agent for the infortnation required to be provided � hereby and to make any necessary or desirable provisions with respect thereto; (c) to evidence the succession of another person to the Issuer and the assumption of any such successor of the duties of the Issuer hereunder; (d) to add to the duties of the Issuer for the benefit of the Holders, or to surrender any right or power herein conferred upon the Issuer; 26928Q4.1 038723 CLD . , - (e) to modify the contents,presentation and format of the Annual Znformation from time to time to conform to changes in accounting or disclosure principles or practices and legal requirements followed by or applicable to the Issuer or to reflect changes in the identiiy,nature or staius of the Issuer or in the business, structure or operations of the Issuer or any mergers, consolidations, acquisitions or�dispositions made by or affecting any such person; provided that any such modifications sha11 comply with the requirements of Rule 15c2-12 or Rule 15c2-12 as in effect at the time of such mbdification; or (fl to cure any ambiguity, to conect or supplement any provision hereof which may be inconsistent with any other provision hereof, or to make any other provisions with respect to matters or questions arising under this Undertaking which,in each case,comply with Rule lSc2-12 or Rule 15c�- . 12 as in effect at the time of such amendment or change; provided that no such action pursuant to this Section 7 shall adversely affect the interests of the Holders in any material respect. In making such determination, the Issuer shall rely upon an opinion of nationally recognized bond counsel. Section 8. Termination. This Undertaking shall remain in full force and effect until such time as a11 principal, redemption premiums, if any, and interest on the Securities shall have been paid in full or the Securities sha11_ have otherwise been paid or legally defeased pursuant to_the their terms. Upon any such legal defeas�nce, the Issuer shall provide notice of such defeasance to the EMMA System. Such notice shall state whether the Securities have been defeased to maturit��or to redeinption and the timing of suc�matUrity or redemg�ian. ' In addition, this Agreement, or any provision hereof, shall be null and void in the event that those portions of the Rule which require this Agreement, or such provision, as the case may be, do nof or no longer apply to the Securities, whether because such portions of the Rule are invalid,have�been repealed,or otherwise. Section 9. Undertakin� to Constitute Written A�reement or Contract. This Undertaking shall constitute the written agreement or contract for the benefit of_Holders of Securiries,as contemplated under Rule 15c2-12. Section 10. Governin� Law. This Undertaking shall be governed by the laws of the State of New York determined without regard to principles of conflict of law. IN WITNESS Wf-IEREOF,the undersigned has duly authorized,executed and delivered this Undertaking as of August 25,2016: TOWN OF SOUTHOLD By Supervisor and Chief Fiscal Officer , 26928041038723 CLD Rudder, Lynda From:. Reisenberg, Lloyd Sent: Friday, July 15, 2016 12:05 PM To: Rudder, Lynda Subject: RE: Refunding Bond for Publication Posted � Lloyd H.I�eisenberg � Network and Systems Administrator Town of Southold,New York www.southoldtownny.pov , llovdr@southoldtownny.pov O: 631-765-1891 �M:631-879-1554 �F: 631-765-5178 CONFIDEN7IALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication. From: Rudder, Lynda Sent: Friday,July 15, 2016 11:08 AM p To: Cushman,John <John.Cushman@town.southold.ny.us>; le�als@timesreview.com; Lisa Finn <lisaahfinn@�mail.com>; Michaelis,Jessica <jessicam@southoldtownnv.�ov>; Reisenberg, Lloyd <Llovd.Reisenber�@town.southold.nv.us>; Southold Local (denise@southoldlocal:com) <denise@southoldlocal.com>; Dinizio,James<lames.dinizio@town.southold.ny.us>; Doherty,Jill <lill.dohertv@town.southold.nv.us>; Doroski, Bonnie <Bonnie.Doroski@town.southold.nv.us>; Ghosio, Bob<bob.�hosio@town.southold.nv.us>; Louisa Evans <Ipevans06390@�mail.com>; Neville, Elizabeth <E.Neville@town.southold.nv.us>; Noncarrow, Denis � <denisn@southoldtownny.�ov>; Rudder, Lynda <lynda.rudder@town.southold.ny.us>; Russell, Scott <scottr@southoldtownnv.�ov>; Standish, Lauren<Lauren.Standish@town.southold.nv.us>;Tomaszewski, Michelle <michellet@town.southold.nv.us>; William Ruland <rulandfarm ahoo:com>; Duffy, Bill <billd@southoldtownnv.�ov>; Kiely,Stephen <stephen.kielv@town.southold.ny.us>; Silleck, Mary<marvs@southoldtownny.�ov> Subject: Refunding Bond for Publication , Please publish the attached notice in the July 215t edition of the Suffolk Times and the Town Website,thanks. 1 Rudder, Lynda From: legals <legals@timesreview.com> Sent: Friday,July 15, 2016 1124 AM To: Rudder, Lynda Subject: Re: Refunding Bond for Publication Good morning, The legal notice has been scheduled to be published in the 7/21 edition of the Suffolk Times. Thank you and have a great day! Best regards, 't'I�� ' ,�t�411�'�P a � �� Lindsay Riemer Assistant Sales Coordinatar 631.298.3200 ext. 235 631.354.8032 (direct) 631.298.0410(fax) Iriemer@timesreview.com www.timesreview.com From: "Rudder, Lynda" <lynda.rudder@town.southold.nv.us> Date: Friday,July 15, 2016 11:07 AM - To: "Cushman,John" <John.Cushman@town.southold.nv.us>, Lee Peters<le�als@timesreview.com>, Lisa Finn <lisaahfinn@gmail.com>, "Michaelis,Jessica" <iessicam@southoldtownnv.�ov>, "Reisenberg, Lloyd" <Llovd.Reisenber�@town.southold.ny.us>, "Southold Local (denise@southoldlocal.com)" <denise@southoldlocal.com>, "Dinizio,James" <james.dinizio@town.southold.ny.us>, "Doherty,Jill" <]ill.dohertv@town.southold.ny.us>, "Doroski, Bonnie" <Bonnie.Doroski@town.southold.ny.us>, "Ghosio, Bob" <bob.�hosio@town.southold.nv.us>, Louisa Evans <Ipevans06390@�mail.com>, "Neville, Elizabeth" <E.Neville@town.southold.nv.us>, "Noncarrow, Denis" <denisn@southoldtownny.�ov>, "Rudder, Lynda" <lynda.rudder@town.southold.nv.us>, "Russell, Scott" <scottrC«�southoldtownny.�ov>, "Standish, Lauren" <Lauren.Standish@town.southold.ny.us>, "Tomaszewski, Michelle" <michellet@town.southold.nv.us>, William Ruland <rulandfarm@vahoo.com>,�'Duffy, Bill" <billd@southoldtownnv.�ov>, "Kiely,Stephen" <stephen.kielv@town.southold.nv.us>, "Silleck, Mary" <marys@southoldtownnv.�ov_> Subject: Refunding Bond for Publication Please publish the attached notice in the July 215t edition of the Suffolk Times and the Town Website,thanks. 1 T \. j DELAFIELD&WOOD��P PHONE 212-820-9300` 28 LIBERTY STREET , NEW YORK FAX 212-514-8425 NEW YORK, NY 10005 WASHINGTON /212\ 820-9662 W�HAWKINS COM JUI 6� 2016 NEWARK l J y HARTFORD LOS ANGELES SACRAMENTO SAN FRANCISCO Town of Southold,New York PORTLAND Refunding Serial Bonds-2016 (Our File Designation: (2615/40872) Mr. John Cushman ' � Town Comptroller � Town of Southold - 53095 Main Road Southold,New York 11971 Dear John: Pursuant to your request, we have prepared the attached draft Extract of Minutes setting forth the Refunding Bond Resolution for consideration by the Town Board at its meeting scheduled for July 12, 2016. Please note that the Refunding Bond Resolution is to be adopted by at least a two-thirds vote of the entire membership of the Town Board, without taking into account any vacancies on the Board. Therefore, four (4) affirmative votes are required for adoption. We have also attached a summary form of the Refunding Bond Resolution together with the prescribed form of Clerk's statutory notice in readiness for publication in the official newspaper of the Town. As you know,publication of the.Refunding Bond Resolution, in summary, together with such statutory form of notice, commences a 20-day statute of limitations � pursuant to the provisions of Section 80.00 et seq. of the Local Financ� Law. Kindly obtain and forward to us a certified copy of the Extract of Minutes and an original Affidavit of Publication from the Town's official newspaper, when available. One (1) original copy of the Extract is to be retained by the Town Clerk and a second should be retained in your office. Please ensure that the �nal proposed Refundin� Financial Plan, dated June 22, 2016, is inserted as Exhibit A to the Refunding-Bond Resolution,which must appear, or be included bv reference, in the Official Minutes of the meetin�. � 26517441 040872 RSIND ' , � With best regards, I remain Very truly yours, I'.��� Robert P. Smith RPS/ml Enclosures cc: William M. Duffy, Esq., Town Attorney Elizabeth A. Neville, Town Clerk Noah Nadelson, Munistat Services,�Inc. 2651744 1 040872 RSIND EXTRACT OF MINUTES Meeting of the Town Board of the Town of Southold, in the County of Suffolk,New York July 12, 2016 * �: * ' A regular meeting of the Town Board of the Town of Southold, in the County of Suffolk,New York, was held at the Town Hall, 53095 Main Road, Southold, New York, on July 12, 2016. There were present: Scott A. Russell, Supervisor; and Board Members: There were absent: Also present: Elizabeth A. Neville, Town Clerk * * * offered the following resolution and moved its adoption: 2651744 1 040872 RSIND , , REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO Recitals WHEREAS, the Town of Southold, in the County of Suffolk, New York (herein called the "Town"), has heretofore issued on May 29, 2008 its $8,850,000 Public Improvement Serial Bonds-2008 (the "2008 Bonds"), which are currently outstanding in the principal amount of$6,075,000 (the "Outstanding 2008 Bonds"), and mature on May 15 in each of the years and � in the principal amounts and bear interest payable semiannuall.y on May 15 and November 15 in each year to maturity, as follows: - Year of Principal Interest Maturi Amount Rate - 2017 $375,000 4.00% 2018 400,000 4.00 � 2019 400,000 4.00 2020 400,000 4.00 2651744 1 040872 RSIND Year of Principal Interest Maturi Amount Rate 2021 425,000 4.00 2022 425,000 4.00 2023 425,000 4.00 2024 450,000 4.00 2025 450,000 4.125 2026 450,000 4.25 2027 450,000 4.25 2028 475,000 4.25 2029 475,000 4.25 2030 475,000 4.25 WHEREAS, the 2008 Bonds maturing on or before May 15, 2018 are not subject to redemption prior to maturity; and the Bonds maturing on or after May 15, 2019 are subject to redemption prior to maturity, at the option of the Town, on May 15, 2018 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on March 19, 2009 its $5,283,000 Public Improvement Serial Bonds-2009 (the "2009 Bonds"), which are currently outstanding in the principal amount of$3,945,000 (the "Outstanding 2009 Bonds"), and mature on March 15 in each of the years and in the principal amounts and bear interest payable semiannually on March 15 and September 15 in each year to maturity, as follows: Year of Principal Interest Maturity Amount Rate 2017 $215,000 4.00% , 2018 225,000 4.00 2019 230,000 4.00 2020 240,000 4.00 2021 250,000 4.00 2022 260,000 4.00 2651744 I 040872 RSIND Year of Principal Interest Maturitv Amount Rate 2023 270,000 4.00 2024 290,000 4.00 2025 300,000 4.125 2026 310,000 4.125 2027 325,000 4.25 2028 330,000 4.25 2029 345,000 4.25 2030 355,000 4.375 WHEREAS, the 2009 Bonds maturing on or before March 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after March 15, 2020 are subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and WHEREAS, the Town has heretofore issued on June 29, 2011 its $13,175,000 Public Improvement Serial Bonds-2011 (the "2011 Bonds"), which are currently outstanding in the principal amount of $10,250,000 (the "Outstanding 2011 Bonds" and, together with the Outstanding 2008 Bonds and the Outstanding 2009 Bonds, the "Outstanding Bonds"), which mature on August 15 in each of the years and in the principal amounts and bear interest payable semiannually on February 15 and August 15 in each year to maturity, as follows: Year of Principal Interest Maturity Amount Rate 2017 $640,000 3.00% 2018 650,000 3.00 2019 665,000 3.00 2020 675,000 3.00 2021 700,000 3.00 2022 720,000 3.125 2651744 I 040872 RSIND Year of Principal Interest Maturitv Amount Rate 2023 740,000 3.25 2024 750,000 3.50 2025 780,000 3.625 2026 735,000 3.750 2027 760,000 4.00 2028 785,000 4.00 2029 810,000 4.00 2030 840,000 4.00 WHEREAS, the 2011 Bonds maturing on or before August 15, 2019 are not subject to redemption prior to maturity; and the Bonds maturing on or after August 15, 2020 are subj ect to redemption prior to maturity, at the option of the Town, on August 15, 2019 and thereafter on any date, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of redemption; and � WHEREAS, Sections 90.00 and 90.10 of the Local Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of New York (herein called the "Law"), authorize the Town to refund all or a portion of the outstanding unredeemed maturities of the Outstanding Bonds by the issuance of new bonds, the issuance of which will result in present value debt service savings for the Town, and the Town Board.has determined that it may be advantageous to refund all or a portion of the Outstanding Bonds; and ' WHEREAS, in order effectuate the refunding, it is now necessary to adopt this Refunding Bond Resolution; NOW, THEREFORE, be it 26517441 040872 RSIND RESOLVED BY THE TOWN BOARD OF THE TOWN OF SOUTHOLD,NEW YORK (by the favorable vote of at least two-thirds of all the members of said Town Board), AS FOLLOWS: Section l. In this resolution, the following definitions apply, unless a different meaning clearly appears from the context: (a) "Bond To Be Refunded" or"Bonds To Be Refunded" means all or any portion of the aggregate Outstanding Bonds, as shall be determined in accordance with Section 8 hereof. (b) "Escrow Contract" means the contract to be entered into by and between the Town and the Escrow Holder pursuant to Section 10 hereof. (c) "Escrow Holder" means the bank or trust company designated as such pursuant to Section 10 hereof. (d) "Outstanding Bonds" shall mean the outstanding unredeemed maturities of the 2008 Bonds,the 2009 Bonds and the 2011 Bonds. (e) "Present Value Savings" means the dollar savings which result from the issuance of the Refunding Bonds computed by discounting the principal and interest payments on both the Refunding Bonds and the Bonds To Be Refunded from the respective maturities thereof to the date of issue of the Refunding Bonds at a rate equal to the effective interest cost of the Refunding Bonds. The effective interest cost of the Refunding Bonds shall be that rate which is arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the Refunding Bonds from the maturity dates thereof to the date of issue of the Refunding Bonds and to the agreed upon price including estimated accrued interest. (� "Redemption Dates" mean May 15, 2018 and any date thereafter with respect to the 2008 Bonds; March 15, 2019 and any date thereafter with respect to the 2008 Bonds; and August 15, 2020 and any date thereafter with respect to the 2011 Bonds; as shall be determined by the Supervisor in accordance with Section 8. (g) "Refunding Bond" or "Refunding Bonds" means all or a portion of the $23,000,000 Refunding Serial Bonds-2016 of the Town of Southold, authorized to be issued pursuant to Section 2 hereo£� 2651744 1 040872 RSIND (h) "Refunding Bond Amount Limitation" means an amount of Refunding Bonds which does not exceed the principal amount of Bonds To Be Refunded plus the aggregate amount of unmatured interest payable on such Bonds To Be Refunded, to and including the applicable Redemption Date, plus redemption premiums payable on such Bonds To Be Refunded as of such Redemption Date, as hereinabove referred to in the Recitals hereof, plus costs and expenses incidental to the issuance of the Refunding�Bonds including the development of the Refunding Financial Plan, and of executing and performing the terms and conditions of the Escrow Contract and all fees and charges of the Escrow Holder as referred to in Section 10 hereof. Section 2. The Town Board of the Town (herein called the "Town Board"), hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates an amount not to exceed $23,000,000 to accomplish such refunding. The plan of financing said appropriation . includes the issuance of the Refunding Bonds in the principal amount of not to exceed ' $23,000,000 and the levy and collection of a tax upon all the taxable real property within the Town to pay the�principal of and interest on said Refunding Bonds as the same shall become due and payable. Bonds of the Town in the m�imum princ'ipal amount of $23,000,000 and designated substantially as "REFUNDING SERIAL BONDS-2016" are hereby authorized to be issued pursuant to the provisions of the Law. The proposed financial plan for the refunding in the form attached hereto as Exhibit A (the "Refunding Financial Plan") prepared for the Town by its Finanoial Advisor, Munistat Services, Inc., and hereby accepted and approved, includes the deposit of all the proceeds of said Refunding Bonds with an Escrow Holder pursuant to an Escrow Contract as authorized in Section 10 hereof, the payment of all costs incurred by the Town in connection with said refunding from such proceeds and, •to the extent required, the investment of a portion of such proceeds by the Escrow Holder in certain obligations. The principal of and interest on such investments, together with the balance of such proceeds to be held uninvested, if any, shall be sufficient to pay (i) the principal of and interest on the Bonds To Be Refunded becoming due and payable on and prior to each applicable Redemption Date and 2651744 1 040872 RSIND (ii) the principal of and premium on the Bonds To Be Refunded which are to be called for redemption prior to maturity on any such Redemption Date. Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are all or a portion of the Outstanding Bonds issued pursuant to various bond resolutions duly adopted by the Town Board on their respective dates, authorizing the issuance of bonds of the Town to finance various purposes of the Town. In accordance with the Refunding Financial Plan, the Refunding Bonds authorized in the aggregate principal amount of not to exceed $23,000,000 shall mature in amounts and at dates to be determined. The Supervisor, the chief fiscal officer of the Town, is hereby authorized to approve all details of the Refunding Financial Plan not contained herein. Section 4. The issuance of the Refunding Bonds will not exceed the Refunding Bond Amount Limitation. The Refunding Bonds shall mature not later than the maximum period of probable usefulness ("PPU") permitted by law at the time of original issuance of the Bonds to be Refunded, as set forth in Exhibit B annexed hereto and hereby made a part hereof, for the objects or purposes financed with the proceeds of the Bonds to be Refunded, commencing at the date of issuance of the first bond or bond anticipation note issued in anticipation of the sale of such bonds. Section 5. The aggregate amount of estimated Present Value Savings is set forth in the proposed Refunding Financial Plan attached hereto as Exhibit A, computed in accordance with subdivision two of paragraph b of Section 90.10 of the Law. Said Refunding Financial Plan has been prepared based upon the assumption that the Refunding Bonds will be issued in the aggregate principal amount, and will mature, be of such terms and bear such interest as set forth therein. The Town Board recognizes that the principal amount of the Refunding Bonds, the 2651744.1 040872 RSIND maturities, terms and interest rates, the provisions, if any, for the redemption thereof prior to maturity, and whether or not any or all of the Refunding Bonds will be insured, and the resulting present value savings, may vary from such assumptions and that the Refunding Financial Plan may vary from that attached hereto as Exhibit A. Section 6. The Refunding Bonds may be sold at public or private sale. (a) If the Bonds are sold at private sale, the Supervisor, as the chief fiscal ofFicer of the Town, is hereby authorized to execute a purchase contract on behalf of the Town for the sale of said Refunding Bonds, provided that the terms and conditions of such sale shall be approved by the State Comptroller. (b) In the event that the Refunding Bonds are sold at public sale pursuant to Section 57.00 of the Law, the Supervisor is hereby authorized and directed to prepare or have prepared a Notice of Sale, a summary of which shall be published at least once in (a) "THE BOND BUYER," published in the City of New York and (b) the official newspaper(s) of the Town having general circulation within said Town, not less than five (5) nor more than thirty (30) days prior to the date of said sale. A copy of such notice shall be sent not less than eight (8) nor more than thirty (30) days prior to the date of said sale to (1) the State Comptroller, Albany, New York 12236; (2) at least two banks or trust companies having a place of business in the county in which the Town is located, or, if only one bank is located in such County, then to such bank and to at least two banks or trust companies having a place of business in an adjoining county; (3) "THE BOND BUYER," 1 State Street Plaza,New York, New York 10004; and (4) at least 10 bond dealers. (c) Prior to the issuance of the Refunding Bonds, the Supervisor shall file with the Town Board all requisite certifications, including a certificate approved by the State 2651744 1 040872 RSIND Comptroller setting forth the Present Value Savings to the Town resulting from the issuance of the Refunding Bonds. In connection with such sale, the Town authorizes the preparation of an Official Statement and approves its use in connection with such sale, and further consents to the distribution of a Preliminary Official Statement prior to the date said Official Statement is distributed. The Supervisor is hereby further authorized and directed to take any and all actions necessary to accomplish said refunding, and to execute any contracts and agreements for the purchase of and payment for services rendered or to be rendered to the Town in connection with said refunding, including the preparation of the Refunding Financial Plan referred to in Section 2 . hereof. Section 7. Each of the Refunding Bonds authorized by this resolution shall contain the recital of validity prescribed by Section 52.00 of the Law and said Refunding Bonds shall be general obligations of the Town, payable as to both principal and interest by a general tax upon all the taxable real property within the Town. The faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the principal of and interest on said Refunding Bonds and provision shall be made annually in the budget of the Town for (a) the amortization and redemption of the Refunding Bonds to mature in such year and (b) the payment of interest to be due and payable in such year. Section 8. Subject to the provisions of this resolution and of the Law, and pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of bonds having substantially level or declining annual debt service, and Sections 50.00, 56.00 to 60.00, 90.00, 90.10 and 168.00 of the Law, the powers and duties of the Town Board relative to determining the amount of Bonds To Be Refunded, prescribing the terms, form and contents and as to the sale and issuance of the Refunding Bonds, and executing an arbitrage certificate relative 2651744 1 040872 RSIND thereto, and as to executing the Escrow Contract described in Section 10, the Official Statement referred to in Section 6 and any contracts for credit enhancements in connection with the issu"ance of the Refunding Bonds and any other certificates and agreements, as to making elections to call in and redeem all or a portion of the Bonds to be Refunded, and as to any determinations relating to the investment of the proceeds of the Refunding Bonds, are hereby delegated to the Supervisor, the chief fiscal officer of the Town. Section 9. The validity of the Refunding Bonds authorized by this resolution may be contested only if: (a) such obligations are authorized for an object or purpose for which the Town is not authorized to expend money, or (b) the provisions of law which should be complied with at the date of the publication of such resolution, or a summary thereof, are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty days after , ' the date of such publication, or (c) such obligations are authorized in violation of the provisions of the constitution. Section 10. Prior to the issuance of the Refunding Bonds, the Town shall contract with a bank or trust company located and authorized to do business in New York State, for the purpose of having such bank or trust company act as the Escrow Holder of the proceeds, , inclusive of any premium from the sale of the Refunding Bonds, together with all income derived from the investment of such proceeds. Such Escrow Contract shall contain such terms and conditions as shall be necessary in order to accomplish the Refunding Financial Plan, including provisions authorizing the Escrow Holder, without further authorization or direction from the Town, except as otherwise provided therein, (a) to make all required payments of 2651744 1 040872 RSIND ' principal, interest and redemption premiums to the appropriate paying agent with respect to the Bonds To Be Refunded, (b)to pay costs and expenses incidental to the issuance of the Refunding Bonds, including the development of the Refunding Financial Plan, and costs and expenses relating to the execution and performance of the terms and conditions of the Escrow Contract and all of its fees and charges as the Escrow Holder, (c) at the appropriate time or times to cause to be given on behalf of the Town the notice of redemption authorized to be given pursuant to Section 13 hereof, and (d) to invest the monies held by it consistent with the provisions of the �Refunding Financial Plan. The Escrow Contract shall be irrevocable and shall constitute a covenant with the holders of the Refunding Bonds. Section 11. The proceeds, inclusive of any premium, from the sale of the Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with the Escrow Holder in accordance with the Escrow Contract. All moneys held by the Escrow Holder, if invested, shall be invested only in direct obligations of the United States of America or in obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which obligations shall mature or be subject to redemption at the option of the holder thereof not later than the respective dates when such moneys will be required to make payments in accordance with the Refunding Financial Plan. Any such moneys remaining in the custody of the Escrow Holder after the full execution of the Escrow Contract shall be returned to the Town and shall be applied by the Town only to the payment of the principal of or interest on the Refunding Bonds then outstanding. Section 12. That portion of such proceeds from the sale of the Refunding Bonds, together with interest earned thereon, which shall be required for the payment of the principal of and interest on the Bonds To Be Refunded, including any redemption premiums, in accordance 2651744.1 040872 RSIND with the Refunding Financial Plan, shall be irrevocably committed and pledged to such purpose and the holders of the Bonds To Be Refunded shall have a lien upon such moneys and the investments thereof held by the Escrow Holder. All interest earned from the investment of such moneys which is not required for such payment of principal of and interest on the Bonds To Be Refunded shall be irrevocably committed and pledged to the payment of the principal of and interest on the Refunding Bonds, or such portion or series thereof as shall be required by the Refunding Financial Plan, and the holders of such Refunding Bonds shall have a lien upon such moneys held by the Escrow Holder. The pledges and liens provided for herein shall become valid and binding upon the issuance of the Refunding Bonds and 'the moneys and investments held by the Escrow Holder shall immediately be subject thereto without any further act. Such pledges and liens shall be valid and bind'ing against all parties having claims of any kind in tort, contract or otherwise against the Town irrespective of whether such parties have notice thereof. Neither this resolution, the Escrow Contract, nor any other instrument relating to such pledges and liens, need be filed or recorded. Section 13. In accordance with the provisions of Section 53.00 and of paragraph h of Section 90.10 of the Law, the Town Board hereby elects to call in and redeem all or a portion of the Bonds To Be Refunded which are subject to prior redemption according to their terms on the Redemption Date, as shall be determined by the Supervisor in accordance with Section 8 hereo£ The sum to be paid therefor on the applicable Redemption Date shall be the par value thereof, the accrued interest to such Redemption Date and the redemption premiums, if any. The Escrow Holder is hereby authorized and directed to cause a notice of such call for , redemption to be given in the name of the Town by mailing such notice at least thirty days prior to such Redemption Date, and in accordance with the terms appearing in the Bonds to be 2651744.1 040872 RSIND Refunded, to the registered holders of the Bonds To Be Refunded which are to be called in and redeemed. Upon the issuance of the Refunding Bonds, the election to call in and redeem the Bonds To Be Refunded which are to be called in and redeemed in accordance herewith and the direction to the Escrow Holder to cause notice thereof to be given as provided in this Section shall become irrevocable and the provisions of this Section shall constitute a covenant with the holders, from time to time, of the Refunding Bonds, provided that this Section may be amended from time to time as may be necessary to comply with the publication requirements of paragraph a of Section 53.00 of the Law, as the same may be amended from time to time. Section 14. This bond resolution shall take effect immediately, and the Town Clerk is hereby authorized and directed to publish the foregoing resolution, in stunmary, together with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in "The Suffolk Times," a newspaper having general circulation in the Town and hereby designated the official newspaper of said Town for such publication. 2651744.1 040872 RSIND The adoption of the foregoing resolution was seconded by and duly put to a vote on roll call, which resulted as follows: AYES: NOES: The resolution was declared adopted. ******���**� 2651744 1 040872 RSIND EXHIBIT A PROPOSED REFUNDING FINANCIAL PLAN 2651744.1 040872 RSIND EXHIBIT B PERIODS OF PROBABLE USEFULNESS (2008 Bonds) Period of Probable Usefulness Purpose Years Open Space Preservation 30 Acquisition of Land and building for Recreational Purposes 25 (2009 Bonds) � Period of Probable Usefulness Purpose Years Open Space Preservation 30 Acquisition of an air vacuum drain cleaner 5 Improvements to Fishers Island Sewer District 30 (2011 Bonds) Period of Probable Usefulness P� Years Open Space Preservation 30 Fishers Island road construction 15 - Construct a new Town animal shelter 15 2651744 1 040872 RSIND CERTIFICATE I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the County of Suffolk, New York, HEREBY CERTIFY that the foregoing annexed extract of the minutes of a meeting of the Town Board of said Town of Southold duly called and held on July 12, 2016, has been compared by me with the original minutes as officially recorded in my office in the Minute Book of said Town Board and is a true, complete and correct copy thereof and of the whole of said original minutes so far as the same relate to the subject matters referred to in said extract. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said Town of Southold this 12th day of July, 2016. (SEAL) Town Clerk r 2651744.1 040872 RSIND � , , NOTICE The resolution, a summary of which is published herewith, has been adopted on July 12, 2016 and the validity of the obligations authorized by such resolution may be hereafter contested only if such obligations were authorized for an object or purpose for which the Town of Southold, in ' the County of Suffolk, New York, is not authorized to expend money or if the provisions of law which should have been complied with as of the date of publication of this Notice were not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty days after the publication of this Notice, or such obligations were authorized in violation of the provisions of the constitution. BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD DATED: July 12, 2016 Southold,New York Elizabeth A. Neville Town Clerk REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE' PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERIVIINATIONS RELATIVE THERETO The object or purpose is to refund all� or a portion of certain outstanding bonds of the Town issued in 2008, 2009 and 2011 for various purposes. - The periods of probable usefulness of the objects or purposes for which the bonds to be refunded were issued consist of various periods ranging from 5 years to 30 years, commencing on the date of original issuance of the first bonds or bond anticipation notes issued for the respective objects or purposes for which the outstanding bonds were issued. The maximum amount of obligations authorized to be issued is $23,000,000. A complete copy of the Bond Resolution summarized above shall be available for public inspection during normal business hours at the�office of the Town Clerk, Town Hall, 53095 Main Road, Southold,New York. 2651744 1 040872 RSIND . , � ESTOPPEL CERTIFICATE I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the County of Suffolk,New York (the"Town"), HEREBY CERTIFY as follows: That a resolution of the Town Board of said Town entitled: "REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD, NEW YORK, ADOPTED JULY 12, 2016, AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING THE PLAN OF REFUNDING, APPROPRIATING AN AMOUNT NOT TO EXCEED $23,000,000 FOR SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $23,000,000 TO FINANCE SAID APPROPRIATION, AND MAKING CERTAIN OTHER DETERMINATIONS RELATIVE THERETO," was adopted on July 12, 2016, and such resolution contained an estoppel clause as permitted by Section 80.00 of the Local Finance Law and a notice setting forth substantially the statements referred to in Section 81.00 of the Local Finance Law, together with a summary of such resolution, was duly published as referred to in said Section 81.00 of the Local Finance Law. That to the best of my knowledge, no action, suit or proceeding contesting the validity of the obligations authorized by such resolution was commenced within twenty days from the date of publication of such notice. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said Town this day of August, 2016. Elizabeth A. Neville, Town Clerk Town of Southold 2651744.1 040872 RSIND � � .� _ _ � � ' �� . � - . Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. TABLE OF CONTENTS Town of Southold Refundmg of 2008,2009&2011 Bonds Report Page Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary of Financing Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . 3 �Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Prior Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Escrow Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Proof of Arbitrage Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Escrow Descriptions Detail . . . . . . . . . . . . . . . . . . . . . . . . . . • . 17 Escrow Cost Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Escrow Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Escrow Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Form 8038 Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Summary of Refundmg Results . . . . . . . . . . . . . . . • • • • • • • • • 28 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Prior Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Escrow Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Escrow Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Escrow Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 � 1' Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. TABLE OF CONTENTS Town of Southold Refunding of 2008,2009&2011 Bonds Report Page Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Escrow Statistics . . . . . . . . . . . . . . . . . • • • • • • • • • • • • • • . 39 Proof of Composite Escrow Yield . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Proof of Arbitrage Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 ` Bond Summary Statistics . . . . . . . . . . . . . . . • • • • • • • • • • • • . . 43 Form 8038 Statistics . . . . . . . . . . . . . . . . . . . . • • • • • . • . . 44 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . • • • • • . . . 51 Prior Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 52 Summary of Bonds Refunded . . . . . . . . . . . . . • • • • • . • • • • • . . . . 53 Escrow Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Escrow Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Escrow Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Escrow Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Proof of Composite Escrow Yield . . . . . . . . . . . . . . • • • • • • • • • . . . 59 Proof of Arbitrage Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Bond Summary Statistics . . . . . . . . . • • • • • • • • • • • • • • • • • • • • 62 Form 8038 Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . • • • • • • . . . . 65 Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Bond Debt Service . . . . . . . . . . . . • • • • • • • • • • • • • • • • • • • • �� � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. TABLE OF CONTENTS Town of Southold Refundmg of 2008,2009&2011 Bonds Report Page Prior Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Escrow Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Escrow Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Escrow Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Escrow Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . • • • • • • 77 Proof of Composite Escrow Yield . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Proof of Arbitrage Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Form 8038 Statistics . . . . . . . . . . . . . • • . • • • • • • • • • • • • • • g2 � { Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 1 SOURCES AND USES OF FUNDS Town of Southold Refunding of 2008,2009&2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 _ Refunding of Refunding of Refunding of Sources: 2008 Bonds 2009 Bonds 2011 Bonds Total Bond Proceeds: � Par Amount 5,560,000.00 3,690,000.00 9,310,000.00 18,560,000.00 Premium 993,916 85 682,594.00 1,801,268.60 3,477,779.45 6,553,916.85 4,372,594.00 11,111,268.60 22,037,779.45 Refunding of Refunding of Refunding of Uses: 2008 Bonds 2009 Bonds 2011 Bonds Total Refunding Escrow Deposits: CashDeposit 0.01 81,197.11 0.76 81,197.88 � SLGS Purchases 6,489,255.00 4,246,822.00 11,009,022.00 21,745,099.00 6,489,255.01 4,328,01911 11,009,022.76 21,826,296.88 Delivery Date Expenses: Cost of Issuance 34,450.43 22,863.69 57,685.88 115,000.00 Underwriter's Discount 25,576.00 16,974.00 42,826.00 85,376.00 60,026.43 39,837.69 100,51188 200,376.00 Other Uses of Funds: Additional Proceeds 4,635.41 4,737.20 1,733.96 11,106.57 6,553,916.85 4,372,594.00 11,111,268.60 22,037,779.45 a Jun 22,2016 4 38 pm Prepared by Mumstat Serv�ces,Inc Pa�a Z SUMMARY OF FINANCING RESULTS Town of Sou[hold Refundmg of 2008,2009&2011 Bands Bond Escrow Negatrve Net Senes Bond Paz Y�eld Contmgency Yield Arbrtrage Savings Refunding of 2008 Bonds 5,560,000 00 1 621% 4,635 41 0 670% 98,305 84 566;736 09 Refund�ng of 2009 Bonds 3,690,000 00 1 649% 4,737 20 0 794% 80,691 72 285,817 08 Refunding of 2011 Bonds 9,310,000 00 1 639% 1,733 96 0 851% 226,333 74 479,830 94 18,560,000.00 11,106 57 405,331 31 1,332,384 11 Aggregate Arb�trage Yield 1 635628% Escrow Y�eld 0 801930°/a ♦ Jun 22,2016 4 38 pm Prepazed by Mun�stat Services,Inc Page 3 SUMMARY OF REFUNDING RESULTS Town ofSouthold Refundmg of 2008,2009&2011 Bonds Refundmg of Refundmg of Refundm�of 2008 Bonds 2009 Bonds 201 I Bonds Total Dated Date 09/Ol/2016 09/Ol/2016 09/O1/2016 09/O1/2016 Delivery Date 09/01/2016 09/O1/2016 09/O1/2016 09/Ol/2016 Arb�trage Yteld 1 635628% 1.635628% 1 635628% 1 635628% Escrow Y�eld 0 670425% 0 793960% 0 850796% 0.801930% Velue of Negat�ve Arbrtrage 98,305 84 80,691 72 226,333 74 405,331 30 Bond Par Amount 5,560,000 00 3,690,000 00 9,310,000 00 18,560,000.00 True Interest Cost 1 912270% I 951045% 1 916009% 1 921878% Net Interest Cost 2 149705% 2.194287% 2 161516% 2 164665% Average Coupon 4 563242% 4.563589% 4 548394% 4 555602% Average Life 7 2l6 7 613 7 913 7.645 Par amount of refunded bonds 6,075,000 00 3,945,000 00 10,250,000 00 20,270,000 00 Average coupon af refunded bonds 4 160847% 4 177587% 3 685611% 3 920603% Average life of refunded bonds 7 483 7 682 7 768 7 666 PV of pnor debt 7,205,819 34 4,728,669 21 11,761,361 22 23,695,849 77 Net PV Savings 566,736 09 285,817.08 479,830 94 1,332,384 11 Percentage savm�s of refunded bonds 9 328989% 7 245046% 4 681277% G 573183% Percentage savmgs of refundmg bonds 10.193095% 7 745720% 5 153931% 7 178794% 1 ! Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 4 SUMMARY OF BONDS REFUNDED Town of Southold Refunding of 2008,2009&2011 Bonds Maturity Interest Par Call Call Bond Date Rate Amount Date Price Public Lnprovement Bonds 2008,2008BOND: 08 BONDS OS/15/2017 4.000% 375,000.00 OS/15/2018 4.000% 400,000.00 OS/15/2019 4.000% 400,000.00 OS/15/2018 100.000 OS/15/2020 4.000% 400,000.00 OS/15/2018 100.000 OS/15/2021 4.000% 425,000.00 OS/IS/2018 100.000 05/15/2022 4.000% 425,000.00 OS/15/2018 100.000 OS/15/2023 4.000% 425,000.00 OS/15/2018 100 000 OS/15/2024 4.000% 450,000.00 05/15/2018 100.000 OS/15/2025 4.125% 450,000.00 OS/15/2018 100.000 05/15/2026 4.250% 450,000.00 OS/15/2018 100.000 OS/15/2027 4.250% 450,000.00 OS/15/2018 100.000 OS/15/2028 4.250% 475,000.00 05/15/2018 100.000 OS/15/2029 4.250% 475,000.00 05/15/2018 100.000 OS/15/2030 4.250% 475,000.00 05/15/2018 100.000 6,075,000.00 Pubilc Improvement Bonds 2009,2009BOND: 09 BONDS 03/15/2017 4.000% 215,000.00 03/15/2018 4.000% 225,000.00 03/15/2019 4.000% 230,000.00 03/15/2020 4.000% 240,000.00 03/15/2019 100.000 03/15/2021 4.000% 250,000.00 03/15/2019 100.000 03/15/2022 4.000% 260,000.00 03/15/2019 100.000 03/15/2023 4.000% 270,000.00 03/15/2019 100.000 03/15/2024 4.000% 290,000.00 03/15/2019 100.000 03/15/2025 4.125% 300,000.00 03/15/2019 100.000 03/15/2026 4.125% 310,000.00 03/15/2019 100.000 03/15/2027 4.250% 325,000 00 03/15/2019 100.000 03/15/2028 4.250% 330,000.00 03/IS/2019 100.000 03/15/2029 4.250% 345,000.00 03/15/2019 100.000 03/15/2030 4.375% 355,000 00 03/15/2019 100.000 3,945,000.00 Public Improvement Bonds 2011,2011BOND: 11 BONDS 08/15/2017 3.000% 640,000.00 08/15/2018 3.000% 650,000.00 08/15/2019 3.000% 665,000.00 08/15/2020 3.000% 675,000.00 08/15/2019 100.000 OS/15/2021 3.000% 700,000.00 08/15/2019 100.000 08/15/2022 3.125% 720,000.00 08/15/2019 100.000 08/15/2023 3.250% 740,000.00 08/15/2019 100.000 08/15/2024 3.500% 750,000.00 08/15/2019 100.000 . 08/15/2025 3.625% 780,000.00 08/15/2019 100.000 08/IS/2026 3.750% 735,000.00 08/15/2019 100.000 08/15/2027 4.000% 760,000.00 08/IS/2019 100.000 08/15/2028 4.000% 785,000.00 08/15/2019 100.000 08/15/2029 4.000% 810,000.00 08/15/2019 100.000 08/15/2030 4.000% 840,000.00 08/IS/2019 100.000 - 10,250,000.00 20,270,000.00 1 i Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 5 SAVINGS Town of Southold Refunding of 2008,2009&2011 Bonds Present Value Prior Refunding Annual to 09/O1/2016 Date Debt Service Debt Service Savings Savings @ 1.6356277% 09/15/2016 81,196.88 185,450.56 -104,253.68 -104,187.66 11/15/2016 124,687.50 124,687.50 124,270.69 12/31/2016 20,433.82 02/15/2017 178,168.75 183,907.78 -5,739.03 -5,696.60 03/15/2017 296,196.88 731,950.00 -435,753.13 -431,944.66 , OS/15/2017 499,687.50 499,687.50 493,977.30 08/15/2017 818,168.75 771,850.00 46,318.75 45,603.35 09/15/2017 76,896,88 188,925.00 -112,028.13 -110,148.20 11/15/2017 117,187.50 117,187.50 114,908.60 12/31/2017 109,673.47 02/15/2018 168,568.75 193,300.00 -24,731.25 -24,151.75 03/15/2018 301,896.88 753,925.00 -452,028.13 -440,837.48 OS/15/2018 517,187.50 517,187.50 503,016.21 08/15/2018 818,568.75 753,300.00 65,268.75 63,222.35 09/15/2018 72,396.88 180,450.00 -108,053.13 -104,523.30 11/15/2018 109,187.50 109,187.50 105,334.25 12/31/2018 106,831.25 02/15/2019 158,818.75 184,900.00 -26,081.25 -25,058.58 03/15/2019 302,396.88 740,450.00 -438,053.13 -420,305.70 OS/15/2019 509,187.50 509,187.50 487,233.50 08/15/2019 823,818.75 759,900.00 63,918.75 60,914.27 09/15/2019 67,796.88 172,050.00 -104,253.13 -99,217.96 11/IS/2019 101,187.50 101,187.50 96,039.30 12/31/2019 105,906.25 02/15/2020 148,843.75 176,275.00 -27,431.25 -25,929.80 03/15/2020 307,796.88 742,050.00 -434,253.13 -409,927.35 OS/15/2020 501,187.50 501,187.50 471,829.49 08/15/2020 823,843.75 756,275.00 67,568.75 63,352.26 09/15/2020 62,996.88 160,650.00 -97,653.13 -91,435.07 11/15/2020 93,187.50 93,187.50 87,017.23 12/31/2020 102,606.25 02/15/2021 138,718.75 164,675.00 -25,956.25 -24,139.09 03/15/2021 312,996.88 755,650.00 -442,653.13 -411,105.16 OS/15/2021 518,187.50 518,187.50 479,951.37 08/15/2021 838,718.75 774,675.00 64,043.75 59,077.00 09/15/2021 57,996.88 148,750.00 -90,753.13 -83,601.43 11/15/2021 84,687.50 84,687.50 77,802.28 12/31/2021 107,556.25 02/15/2022 128,218.75 152,475.00 -24,256.25 -22,193 62 03/15/2022 317,996.88 753,750 00 -435,753.13 -398,157.91 05/15/2022 509,687.50 509,687.50 464,450.82 08/15/2022 848,218.75 787,475.00 60,743.75 55,127.55 09/IS/2022 52,796.88 133,625.00 -80,828.13 -73,255.47 11/15/2022 76,187.50 76,187.50 68,862.41 12/31/2022 105,781.25 02/15/2023 116,968.75 136,600.00 -19,631.25 -17,671.68 03/15/2023 322,796.88 753,625.00 -430,828.13 -387,297.18 OS/15/2023 501,187.50 501,187.50 449,325.88 08/15/2023 856,968.75 796,600.00 60,368.75 53,901.98 09/15/2023 47,396.88 118,125.00 -70,728.13 -63,065.98 11/15/2023 67,687.50 67,687.50 60,191.12 12/31/2023 108,056.25 02/15/2024 104,943.75 120,100.00 -15,156.25 -13,422.92 , z Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 6 SAVINGS Town of Southold Refundtng of 2008,2009&2011 Bonds Present Value Prior Refunding Annual to 09/O1/2016 - Date Debt Service Debt Service Savings Savings @ 1.6356277% 03/15/2024 337,396.88 788,125.00 -450,728.13 -398,639.56 OS/15/2024 517,687.50 517,687.50 456,619.37 08/15/2024 854,943.75 800,100.00 54,843.75 48,177.60 09/15/2024 41,596.88 101,375.00 -59,778.13 -52,440.97 11/15/2024 58,687.50 58,687.50 51,344.62 12/31/2024 105,556.25 02/15/2025 91,818 75 103,100.00 -11,281.25 -9,829.65 03/15/2025 341,596.88 781,375.00 -439,778.13 -382,670.35 OS/15/2025 508,687.50 508,687.50 441,431.34 08/IS/2025 871,818.75 823,100.00 48,718.75 42,105.57 09/15/2025 35,409.38 84,375.00 -48,965.63 -42,261.53 11/15/2025 49,406.25 49,406.25 42,526.21 12/31/2025 106,787.50 02/15/2026 77,681.25 85,100.00 -7,418.75 -6,359.70 03/15/2026 345,409.38 779,375.00 -433,965.63 -371,511.25 OS/15/2026 499,406.25 499,406.25 426,374.79 08/15/2026 812,681.25 765,100.00 47,581.25 40,458.03 09/15/2026 29,015.63 67,000.00 -37,984.38 -32,254.06 11/15/2026 39,843.75 39,843.75 33,741.20 12/31/2026 107,462.50 02/15/2027 63,900.00 68,100.00 -4,200.00 -3,542.26 03/15/2027 354,015.63 782,000.00 -427,984.38 -360,470.72 OS/15/2027 489,843.75 489,843.75 411,453.31 08/15/2027 823,900.00 783,100.00 40,800.00 34,131.43 09/15/2027 22,109.38 49,125.00 -27,015.63 -22,569.39 11/15/2027 30,281.25 30,281.25 25,228.97 12/31/2027 101,725.00 02/15/2028 48,700.00 50,225.00 -1,525.00 -1,265.40 03/15/2028 352,109.38 794,125.00 -442,015.63 -366,273.21 OS/15/2028 505,281.25 505,281.25 417,562,63 08/15/2028 833,700.00 795,225.00 38,475.00 31,666.38 09/15/2028 15,096.88 30,500.00 -15,403.13 -12,660.16 11/15/2028 20,187.50 20,187.50 16,547.55 12/31/2028 105,000.00 02/15/2029 33,000.00 31,600.00 1,400.00 1,142.91 03/15/2029 360,096.88 790,500.00 -430,403.13 -350,887.90 OS/15/2029 495,187.50 495,187.50 402,609.08 08/15/2029 843,000.00 806,600.00 36,400.00 29,474.51 09/15/2029 7,765.63 15,300.00 -7,534.38 -6,092.60 11/15/2029 10,093.75 10,093.75 8,140.09 12/31/2029 105,143.75 02/15/2030 16,800.00 16,100.00 700.00 562.22 03/15/2030 362,765.63 780,300.00 -417,534.38 -334,896.54 OS/15/2030 485,093.75 485,093.75 388,029.74 08/15/2030 856,800.00 821,100.00 35,700.00 28,440.61 12/31/2030 103,959.38 26,526,237.50 25,023,758.33 1,502,479.17 1,502,479.17 1,321,277.54 . � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 7 SAVINGS Town of Southold Refunding of 2008,2009&2011 Bonds Savings Summarv PV of savings from cash flow 1,321,277.54 Plus:Refunding funds on hand 11,106.57 Net PV Savings 1,332,384.11 a Jun 22,2016 4:38 pm Prepared by Mumstat Services,Inc. Pa�8 PRIOR BOND DEBT SERVICE Town of Southold Refundmg of 2008,2009&2011 Bonds Period Annual Ending Principa] Coupon Interest Debt Service Debt Service 09/15/2016 81,196.88 81,196.88 11/15/2016 124,687.50 124,687.50 12/31/2016 205,884.38 02/15/2017 178,168.75 178,168.75 03/15/2017 215,000 4.000% 81,196.88 296,196.88 OS/15/2017 375,000 4.000% 124,687.50 499,687.50 08/15/2017 640,000 3.000% 178,168.75 818,168.75 09/IS/2017 76,896.88 76,896.88 11/15/2017 117,187.50 117,187.50 12/31/2017 1,986,306.25 02/15/2018 168,568.75 168,568.75 , 03/15/2018 225,000 4.000% 76,896.88 301,896.88 OS/15/2018 400,000 4.000% 117,187.50 517,187.50 08/15/201'8 650,000 3.000% 168,568.75 818,568.75 09/15/2018 72,396.88 72,396.88 11/15/2018 109,187.50 109,187.50 12/31/2018 1,987,806.25 02/15/2019 158,818.75 158,818.75 � 03/15/2019 230,000 4.000% 72;396 88 302,396.88 OS/15/2019 400,000 4.000% 109,187.50 509,187.50 08/15/2019 665,000 3.000% 158,818.75 823,818 75 09/15/2019 67,796.88 67,796.88 11/15/2019 101,187.50 101,187.50 12(31/2019 1,963,206.25 02/15/2020 148,843.75 148,843.75 03/15/2020 240,000 4.000% 67,796.88 307,796.88 OS/15/2020 400,000 4.000% 101,187.50 501,187.50 08/15/2020 , 675,000 3.000% 148,843.75 823,843.75 09/IS%2020 62,996,88 62,996.88 I1/15/2020 93,187.50 93,187.50 12/31/2020 1,937,856.25 02/I S/2021 138,718.75 138,718.75 03/15/2021 250,000 4.000% 62,996.88 312,996.88 OS/ISl2021 425,000 4.000% 93,187.50 518,187.50 08/15/2021 700,000 3.000% 138,718.75 838,718.75 09/15/2021 57,996 88 57,996.88 11/15/2021 84,687 50 84,687.50 12/31/2021 1,951,306 25 02/15/2022 128,218.75 128,218.75 03(15/2022 260,000 4.000% 57,996.88 317,996.88 OS/15/2022 425,000 4.000% 84,687.50 509,687.50 08/15/2022 720,000 3.125% 128,218 75 848,218.75 09/15/2022 52,796.88 52,796.88 11/15/2022 76,187.50 76,187.50 12/31/2022 1,933,106.25 02/15/2023 116,968.75 116,968.75 , 03/15/2023 270,000 4.000% 52,796.88 322,796.88 OS/15/2023 425,000 4.000% 76,187.50 501,187.50 08J15/2023 740,000 3.250% 116,968.75 856,968.75 09/15/2023 47,396.88 47,396.88 11/15/2023 67,687.50 67,687.50 12/31(2023 1,913,006.25 02/15/2024 104,943.75 104,943.75 03/15/2024 290,000 4.000% 47,396.88 337,396.88 � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 9 PRIOR BOND DEBT SERVICE Town of Southold Refunding of 2008,2009&2011 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service OS/15/2024 450,000 4.000% 67,687.50 517,687.50 08/15/2024 750,000 3.500% 104,943.75 854,943.75 09/15(2024 41,596.88 41,596.88 11/15/2024 58,687.50 58,687.50 12/31/2024 1,915,256.25 02/15/2025 91,818.75 91,818 75 03/15/2025 300,000 4.125% 41,596.88 341,596.88 05/15/2025 450,000 4.125% 58,687.50 508,687.50 08/15/2025 780,000 3.625% 91,818.75 871,818.75 09/15/2025 35,409.38 35,409.38 11/15/2025 49,406.25 49,406.25 12/31/2025 1,898,737.50 02/IS/2026 77,681.25 77,681.25 03/15/2026 310,000 4.125°/a 35,409.38 345,409.38 05/15/2026 450,000 4.250% 49,406.25 499,406.25 08/15/2026 735,000 3.750% 77,681.25 812,681.25 09/15/2026 29,015.63 29,015.63 11/15/2026 39,843.75 39,843.75 12/31/2026 1,804,037.50 02/15/2027 63,900.00 63,900.00 03/15/2027 325,000 4.250% 29,015.63 354,015.63 OS/15/2027 450,000 4.250% 39,843.75 489,843.75 � 08/15/2027 760,000 4.000% 63,900.00 823,900.00 09/15/2027 22,109 38 22,109.38 11/IS/2027 30,281.25 30,281.25 12/31/2027 1,784,050.00 02/15/2028 48,700 00 48,700.00 03l15/2028 330,000 4.250% 22,109.38 352,109.38 OS/15/2028 475,000 4.250% 30,281.25 505,281.25 08/15/2028 785,000 4.000% 48,700.00 833,700.00 09/15/2028 15,096.88 15,096.88 11/15/2028 20,187.50 20,187.50 12/31/2028 1,775,075.00 02/15/2029 33,000.00 33,000.00 03/15/2029 345,000 4.250% 15,096.88 360,096 88 OS/15/2029 475,000 4.250% 20,187.50 495,187 50 08/15/2029 810,000 4.000% 33,000.00 843,000 00 09/15/2029 7,765.63 7,765.63 11/15/2029 10,093.75 10,093 75 12/31/2029 1,749,143.75 02/15/2030 16,800.00 16,800.00 03/15/2030 355,000 4.375% 7,765.63 362,765 63 I OS/15/2030 475,000 4.250% 10,093,75 485,093 75 08/15/2030 840,000 4.000% 16,800.00 856,800.00 12/31/2030 1,721,459.38 20,270,000 6,256,237.50 26,526,237.50 26,526,237.50 � , . Jun 22,2016 4 38 pm Prepazed by Mumstat Servwes,Inc Page 10 BOND PRICING Town of Southold . Refundmg of 2008,2009&2011 Bonds Matur�ty Yield to Call Call Call Date Call Pnce Bond Component Date Amount Rate Yield Pnce Matunty Date Pnce for Arb Yield for Arb Yield Refundmg of 2008 Bonds,Ref of 08s 09/15/2016 100,000 2 000% 0 700% 100 O50 03/IS/2017 340,000 3 000% 0 750% 101 207 03/15/2018 360,000 3,000% 0 850% 103 279 03/15/2019 355,000 3 000% 0 900% 105 259 03/15/2020 355,000 4 000% 1 000% 110 405 03/15/2021 375,000 4 000% 1 100% 112 804 03/15/2022 375,000 5 000% 1 250% 120.007 03l15/2023 375,000 5 000% 1 350% 122 769 03/15/2024 405,000 5 000% 1 450% 125 264 03/15/2025 405,000 5000% I550°/a 127492 03/15/2026 405,000 5000% 1650% 129454 03/15/2027 410,000 5 000% 1.760% 128 335 C 2 004% 03/IS/2026 100 000 03/IS/2026 100 000 03/15/2028 435,000 5 000% 1 850% 127 428 C 2 283% 03/15/2026 100 000 03/15/2026 100.000 03/IS/2029 435,000 4 000% 2 000% 117 289 C 2 395% 03/15/2026 100 000 03/15/2026 100 000 03/15/2030 430,000 4 000% 2 100% 116 345 C 2 563% 03/15/2026 100 000 03/IS/2026 100 000 5,560,000 Refundmg of 2009 Bonds,Bond Component 09/15/2016 70,000 2 000% 0,700% 100 O50 03/15/2017 195,000 3 000% 0 750% 101 207 03/15/2018 205,000 3 000% 0 850% 103 279 03/15/2019 205,000 3 000% 0 900% 105 259 03/15/2020 215,000' 4 000% 1 000% 110 405 03/15/2021 220,000 4 000% 1 100% 112 804 03/IS/2022 230,000 5 000% I 250°/a 120 007 03/15/2023 245,000 5 000% 1 350% 122.769 - 03/15/2024 265,000 5 000% 1 450% 125 264 03/IS/2025 275,000 5 000% 1 550% 127 492 , 03/IS/2026 290,000 5 000% I 650% 129.454 03/15/2027 305,000 5 000% 1 760�/ 128 335 C 2 004°/ 03/15/2026 100 000 03/15/2026 100 000 03/15/2028 310,000 5 000% 1,850% 127.428 C 2 283% 03/IS/2026 100 000 03/15/2026 100 000 03/15/2029 325,000 4 000% 2 000% 117 289 C 2 395% 03/15/2026 100 000 03l15/2026 100 000 03/15/2030 335,000 4 000% 2 100% 116 345 C 2 563% 03/15/2026 100 000 03/15/2026 100 000 � 3,690,000 , : Jun 22,2016 4 38 pm Prepared by Munistat Servwes,Inc Page 11 BOND PRICING Town of Southold Refundmg of 2008,2009&2011 Bonds , Matunry Yield to Call Call Call Date Call Pnce Bond Component Date Amount Rate Yield Pnce Matunty Date Pnce for Arb Yield for Arb Yield Refundmg of 2011 Bonds,Bond Component. 08/15/2017 570,000 3 000% 0 770% 102 118 08/15/2018 560,000 3 000% 0 860% 104 140 08/15/2019 575,000 3 000% 0 910% 106 O80 08/15/2020 580,000 4 000% 1 O10% 111 564 08/15/2021 610,000 4 000% 1 120% 113 845 08/IS/2022 635,000 5 000% I 260% 121 393 OS/IS/2023 660,000 5 000% 1 360% 124 078 08/IS/2024 680,000 5 000% 1 460% 126 496 08/15/2025 720,000 5 000% 1 560% ' 128 647 08/15/2026 680,000 5 000% 1 670% 130,425 08/IS/2027 715,000 5 000% 1 780% 129 257 C 2 O11% OS/15/2026 100 000 08/15/2026 100 000 08/15/2028 745,000 5 000% 1 860% l28 415 C 2 272% 08/IS/2026 100 000 08/15/2026 100 000 OS/15/2029 775,000 4 000% 2 020% 117.774 C 2 396% 08%IS/2026 100 000 08/15/2026 100 000 08/15/2030 805,000 4 000% 2 150% 116 499 C 2 584% 08/15/2026 100 000 08/15/2026 100 000 9,310,000 18,560,000 Dated Date 09lO1/2016 Dehvery Date 09/01/2016 Par Amoun[ 18,560,000 00 Premmm 3,477,779 45 Produchon 22,037,779 45 I 18 738036% Underwnter's Discount -85,376 00 -0 460000% Purchase Pnce 21,952,403.45 118 278036% Accrued Interest Net Proceeds 21,952,403 45 t Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 12 , BOND DEBT SERVICE Town of Southold Refunding of 2008,2009&2011 Bonds Period Annual Ending Prmcipal Coupon Interest Debt Service Debt Service 09/15/2016 170,000 2.000% 15,450.56 185,450.56 12/31(2016 185,450.56 02/15/2017 183,907.78 183,907.78 03/15/2017 535,000 3.000% 196,950.00 731,950.00 08/15/2017 570,000 3.000% 201,850.00 771,850.00 09/15/2017 188,925.00 188,925.00 12/31/2017 1,876,632.78 02/15/2018 193,300.00 193,300.00 03/15/2018 565,000 3.000% 188,925.00 753,925.00 08/15/2018 560,000 3.000% � 193,300.00 753,300.00 09/15/2018 180,450.00 180,450.00 12/31/2018 1,880,975.00 02/15/2019 184,900.00 184,900.00 03/15/2019 560,000 3.000% 180,450.00 740,450.00 08/15/2019 575,000 3.000% 184,900.00 759,900 00 09/15I2019 172,050.00 172,050.00 12/31/2019 1,857,300.00 02/15/2020 176,275.00 176,275.00 03/15/2020 570,000 4.000% 172,050.00 742,050.00 08/15/2020 580,000 4.000% 176,275.00 756,275 00 09/15/2020 160,650.00 160,650,00 12/31/2020 1,835,250.00 02/15/2021 164,675.00 164,675.00 , 03/15/2021 . 595,000 4.000% 160,650.00 755,650.00 08/IS/2021 610,000 4.000% 164,675.00 774,675 00 09/15/2021 148,750.00 148,750.00 12/31/2021 1,843,750.00 02/15/2022 152,475.00 152,475.00 03/15/2022 605,000 5.000% 148,750.00 753,750.00 ' 08/15/2022 635,000 5.000% 152,475.00 787,475.00 09/15/2022 . 133,625.00 133,625.00 12/31/2022 1,827,325.00 02/IS/2023 136,600.00 136,600.00 03/15/2023 620,000 5.000% 133,625.00 753,625.00 08/15/2023 660,000 5,000% 136,600.00 796,600.00 , 09/15/2023 118,125.00 118,125 00 12/31/2023 1,804,950.00 02/15/2024 120,100.00 120,100 00 03/15/2024 670,000 5.000% 118,125.00 788,125.00 08/15/2024 680,000 5 000% 120,100.00 800,100.00 09/15/2024 101,375.00 101,375.00 12/31/2024 ' 1,809,700.00 02/15/2025 103,100.00 103,100.00 03/15/2025 680,000 5.000% 101,375.00 781,375.00 08/15/2025 720,000 5.000% 103,100.00 823,100.00 09/15/2025 84,375.00 84,375.00 12/31/2025 1,791,950.00 02/I S/2026 85,100.00 85,100.00 03/15/2026 695,000 5 000% 84,375.00 779,375.00 08/15/2026 680,000 5.000% 85,100.00 765,100 00 09/15/2026 67,000.00 67,000.00 12/31/2026 1,696,575.00 02(15l2027 68,100.00 68,100.00 03/15/2027 715,000 5.000% 67,000 00 782,000.00 . � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 13 BOND DEBT SERVICE Town of Southold Refundmg of 2008,2009&2011 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 08/15/2027 . 715,000 5.000% 68,100.00 783,100.00 09/15/2027 49,125.00 49,125.00 . 12/31/2027 1,682,325.00 02/15/2028 50,225.00 50,225.00 03/15/2028 745,000 5.000% 49,125.00 794,125.00 08/15/2028 745,000 5.000% 50,225.00 795,225.00 09/15/2028 30,500.00 30,500.00 12/31/2028 1,670,075.00 02/15/2029 31,600 00 31,600.00 03/15/2029 760,000 4.000% 30,500.00 790,500.00 08/15/2029 775,000 4.000% 31,600.00 806,600.00 09/I S/2029 15,300.00 15,300.00 12/31/2029 1,644,000.00 02/15/2030 16,100.00 16,100 00 03/15/2030 765,000 4.000% 15,300.00 780,300.00 08/15/2030 805,000 4.000% 16,100,00 821,100.00 12/31/2030 1,617,500.00 18,560,000 6,463,758.33 25,023,758.33 25,023,758.33 i Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 14 ESCROW REQUIREMENTS Town of Southold Refunding of 2008,2009&2011 Bonds Period Principal Ending Principal Interest Redeemed Total 09/15/2016 81,196 88 81,196.88 11/15/2016 124,687.50 124,687.50 02/15/2017 178,168.75 178,168.75 03/15/2017 215,000.00 81,196.88 �296,196.88 OS/15/2017 375,000.00 124,687.50 499,687.50 08/15/2017 640,000.00 178,168.75 818,168.75 09/15/2017" 76,896.88 76,896.88 11/15/2017 117,187.50 117,187.50 02(15/2018 168,568.75 168,568.75 03/15/2018 225,000.00 76,896.88 301,896.88 05/15/2018 400,000.00 117,187.50 5,300,000.00 5,817,187.50 08/15/2018 650,000.00 168,568.75 818,568.75 09/15/2018 72,396.88 72,396.88 02/15/2019 158,818.75 158,818.75 03/15/2019 230,000.00 72,396.88 3,275,000.00 3,577,396.88 08/15/2019 665,000.00 158,818.75 8,295,000.00 9,118,818.75 3,400,000.00 1,955,843.75 16,870,000.00 22,225,843.75 • �r 7un 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 15 PROOF OF ARBITRAGE I'IELD Town of Southold Refunding of 2008,2009&2011 Bonds Present Value Refunding of 2008 Refunding of 2009 Refunding of 2011 to 09/O1/2016 Date Bonds - Bonds Bonds Total @ 1.6356277275% 09/15/2016 109,253.61 76,196.94 185,450.56 185,333.11 02/15/2017 183,907.78 183,907.78 182,548.07 03/15/2017 457,975.00 273,975.00 731,950.00 725,552.79 08/15/2017 771,850.00 771,850.00 759,928.59 09/15/2017 112,875.00 76,050.00 188,925.00 185,754.68 02/15/2018 193,300.00 193,300.00 188,770.64 03/15/2018 472,875.00 281,050.00 753,925.00 735,260.43 08/15/2018 753,300.00 753,300.00 729,681.42 09/15/2018 107,475.00 72,975.00 180,450.00 174,555.15 02/15/2019 184,900.00 184,900.00 177,649.90 03/15/2019 462,475.00 277,975 00 740,450 00 710,451.17 08/15/2019 759,900.00 759,900.00 724,181.15 09/15/2019 102,150.00 69,900.00 172,050.00 163,740.42 02/15/2020 � 176,275.00 176,275.00 166,626.56 03/1`5/2020 457,150.00 284,900.00 �742,050.00 700,482.22 08/15/2020 756,275.00 756,275.00 709,081.18 09(15/2020 95,050.00 65,600.00 160,650.00 150,420.63 02/15/2021 164,675.00 164,675.00 153,146.34 03/15/2021 470,050.00 285,600.00 755,650.00 701,794.70 , 08/15/2021 774,675.00 774,675.00 714,597.03 09/15/2021 87,550.00 61,200.00 148,750.00 137,027.93 02/15/2022 152,475.00 152,475.00 139,509.26 03/15/2022 462,550.00 291,200.00 753,750.00 688,719.16 08/15/2Q22 787,475.00 787,475.00 ,714,667.26 09/15/2022 78,175.00 55,450.00 133,625.00 121,105.90 02/15/2023 136,600.00 136,600.00 122,964.72 03/15/2023 453,175.00 300,450.00 753,625.00 677,478.61 08/15/2023 796,600.00 796,600.00 711,267.33 - 09/15/2023 68,800.00 49,325 00 118,125.00 105,328.24 02/15/2024 120,100.00 120,100.00 106,364.89 03/15/2024 473,800.00 314,325.00 788,125.00 697,045.04 08/15/2024 800,100.00 800,100.00 702,849.40 09/15/2024 58,675.00 42,700.00 101,375.00 - 88,932.26 � 02/15/2025 103,100.00 103,100.00 89,833.72 03/15/2025 463,675 00 317,700 00 781,375 00 679,908.86 08/15/2025 823,100 00 823,100.00 711,370.84 09/15/2025 48,550.00 35,825.00 84,375.00 72,822.85 02/15/2026 85,100.00 85,100.00 72,951.75 03/15/2026 2,163,550 00 1,600,825.00 3,764,375.00 3,222,623.10 08/15/2026 3,805,100.00 3,805,100.00 3,235,452.14 7,205,828.61 4,833,221.94 12,328,807.78 24,367,858.33 22,037,779 45 Proceeds Summarv � Delivery date 09/O1/2016 Par Value 18,560,000.00 Premium(Discount) 3,477,779.45 Target for yield calculation 22,037,779.45 a Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 16 PROOF OF ARBITRAGE I'IELD Town of Southold Refundmg of 2008,2009&2011 Bonds Assumed Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 09/01/2016 Component Date Rate Yield Date Price @ 1.6356277275% - _ REF8 03/15/2027 5.000% 1.760% 03/15/2026 100.000 5,199.39 REF8 03/15/2028 5.000% 1.850% 03/15/2026 100.000 9,461.88 REF8 03/15/2029 4.000% 2.000% 03/15/2026 100.000 15,291.14 REF8 03/15/2030 4.000% 2.100% 03/15/2026 100.000 19,174.58 BOND 03/15/2027 5.000% 1.760% 03/15/2026 100.000 3,867.84 BOND 03/15/2028 5.000% 1.850% 03/15/2026 100.000 6,742.95 BOND 03/15/2029 4.000% 2.000% 03/15/2026 100.000 11,424.42 BOND 03/15/2030 4.000% 2 100% 03/15/2026 100 000 14,938.34 BOND 08/15/2027 5.000°/a 1.780% 08/15(2026 100.000 10,992.30 BOND 08/1512028 5.000% 1.860% 08/15/2026 100.000 17,726.42 BOND 08/15/2029 4.000% 2.020% 08/15/2026 100.000 29,972.19 BOND 08/15/2030 4.000% 2.150% 08/15/2026 100.000 41,396.16 Reiected Call/Computation Dates for Premium Bonds Present Value Bond Maturity Call Call to 09/O1/2016 Increase Component Date Rate Yield Date Price @ 1.6356277275% to NPV REF8 03/15/2027 5 000% 1.760% 16,864.86 11,665.47 REF8 03/15/2028 5.000% 1.850% 34,015.45 24,553.57 REF8 03/15/2029 4,000% 2.000% 40,965.79 25,674.65 REF8 03/15/2030 4.000% 2 100% 52,742.07 33,567.49 � BOND 03/15/2027 5.000% 1.760% 12,545.81 8,677.97 BOND 03/15/2028 5.000% 1.850% 24,240.90 17,497 95 BOND 03/15/2029 4.000% 2.000% 30,606.63 19,182.21 BOND 03/15/2030 4.000% 2.100% 41,089.75 26,151.41 BOND 08/15/2027 5.000% 1.780% 31,198.13 20,205 83 BOND 08/IS/2028 5.000% 1.860% 59,493.49 41,767.07 BOND 08/15/2029 4.000% 2 020% 75,404.97 45,432.78 BOND 08/15(2030 4.000% 2.150% 103,812 53 62,416 37 a Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 17 ESCROW DESCRIPTIONS DETAIL Town of Southold Refundmg of 2008,2009&2011 Bonds Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Refunding of 2008 Bonds,Global Proceeds Escrow,Sep 1,2016: SLGS Certificate 11/15/2016 11/15/2016 116,477 0.250% 0.250% SLGS Certificate OS/15/2017 OS/15/2017 478,113 0.470% 0.470% SLGS Note 11/15/2017 11/15/2016 97,189 0.590% 0.590% SLGS Note OS/15/2018 11/15/2016 5,797,476 0.680% 0.680% 6,489,255 Refunding of 2009 Bonds,Global Proceeds Escrow,Sep 1,2016: SLGS Certificate 03/15/2017 03/15/2017 278,628 0.420% 0.420% SLGS Note 09/15/2017 03/15/2017 61,152 0.560% 0 560% SLGS Note 03/15/2018 03/15/2017 286,322 0.650% 0.650% SLGS Note 09/15/2018 03/15/2017 57,754 0.740% 0,740% SLGS Note 03/15/2019 03/15/2017 3,562,966 0.810% 0.810% 4,246,822 Refundirig of 2011 Bonds,Global Proceeds Escrow,Sep 1,2016: SLGS Certificate 02/15/2017 02/15/2017 138,722 0.370% 0.370% SLGS Certificate 08/15/2017 08/15/2017 770,996 0.540% 0.540% SLGS Note 02/15/2018 02/15/2017 125,366 0.640% 0.640% SLGS Note 08/15/2018 02/15/2017 775,767 0.730% 0.730% SLGS Note 02/15/2019 02/15/2017 118,848 0 800% 0 800% SLGS Note 08/15/2019 02/15/2017 9,079,323 0.870% 0.870°/a 11,009,022 21,745,099 SLGS Summarv SLGS Rates File 22JUN16 Total Certificates of Indebtedness 1,782,936 00 Total Notes 19,962,163.00 Total original SLGS 21,745,099.00 a ♦ Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 18 ESCROW COST DETAIL Town of Southold Refunding of 2008,2009&2011 Bonds Type of Maturity Par Total Security Date Amount Rate Cost Refunding of 2008 Bonds,Global Proceeds Escrow: SLGS 11/15/2016 116,477 0.250% 116,477.00 SLGS OS/15/2017 478,113 0.470% 478,113.00 SLGS 11/15/2017 97,189 0 590% 97,189.00 SLGS OS/15/2018 5,797,476 0.680% 5,797,476.00 6,489,255 6,489,255.00 Refunding of 2009 Bonds,Global Proceeds Escrow: SLGS 03/15/2017 278,628 0.420% 278,628.00 SLGS 09/15I2017 61,152 0.560% 61,152.00 SLGS 03/15/2018 286,322 0.650% 286,322.00 SLGS 09/15/2018 57,754 0.740% 57,754.00 SLGS 03/15/2019 3,562,966 0.810% 3,562,966.00 4,246,822 4,246,822.00 Refunding of 2011 Bonds,Global Proceeds Escrow: SLGS 02/15/2017 138,722 0.370% 138,722.00 SLGS 08/15/2017 770,996 0.540% 770,996.00 SLGS 02/15/2018 125,366 0.640% 125,366.00 SLGS 08/15/2018 775,767 0.730% 775,767.00 SLGS 02/15/2019 118,848 0.800% 118,848 00 SLGS 08/15/2019 9,079,323 0.870% 9,079,323.00 11,009,022 11,009,022.00 - 21,745,099 21,745,099.00 Purchase Cost of Cash Total Escrow Date Securities Deposit Escrow Cost Yield Refunding of 2008 Bonds,Global Proceeds Escrow: 09/O1/2016 6,489,255 0.01 6,489,255.01 0.670425% Refiznding of 2009 Bonds,Global Proceeds Escrow: 09/O1/2016 4,246,822 81,197.11 4,328,019.11 0.793960% Refunding of 2011 Bonds,Global Proceeds Escrow: 09/O1/2016 11,009,022 0.76 11,009,022.76 0.850796% 21,745,099 81,197.88 21,826,296.88 a Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 19 ESCROW CASH FLOW Town of Southold Refundmg of 2008,2009&2011 Bonds � Net Escrow Date Prmcipal Interest Receipts 11/15/2016 116,477.00 8,211.24 124,688.24 02/15/2017 138,722.00 39,446.42 178,168.42 03/15/2017 278,628.00 17,568.70 296,196.70 OS/15/2017 478,113.00 21,574.20 499,687.20 08/15/2017 770,996.00 47,172.64 818,168.64 09/15/2017 61,152.00 15,745.48 76,897.48 11/15/2017 97,189.00 19,998.13 117,187.13 02/IS/2018 125,366.00 43,203.17 168,569.17 03/15/2018 286,322.00 15,574.25 301,896.25 05/15/2018 5,797,476.00 19,711.42 5,817,187.42 08/15/2018 775,767.00 42,802.00 818,569.00 09/15/2018 57,754.00 14,643.70 72,397.70 02/15/2019 118,848.00 39,970.45 158,818.45 03/15/2019 3,562,966.00 14,430.01 3,577,396.01 08/15/2019 9,079,323.00 39,495.06 9,118,818.06 21,745,099.00 399,546.87 22,144,645.87 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 21,745,099.00 • Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 20 ESCROW SUFFICIENCY Town of Southold Refunding of 2008,2009&2011 Bonds Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 09/O1/2016 81,197.88 81,197.88 81,197.88 09/15/2016 81,196.88 -81,196.88 1.01 11/15/2016 124,687.50 124,688.24 0.74 1.75 02/15/2017 178,168.75 178,168.42 -0.33 1.42 03/IS/2017 296,196.88 296,196.70 -0.18 1.24 OS/15/2017 499,687.50 499,687.20 -0.30 0.94 08/15/2017 818,168.75 818,168.64 -0.11 0.83 - 09/15/2017 76,896.88 76,897.48 0.61 1.44 11/15/2017 117,187.50 117,187.13 -0.37 1.07 02/15/2018 168,568.75 168,569.17 0.42 1.49 03/15/2018 301,896.88 301,896.25 -0.63 0.86 OS/15/2018 5,817,187 50 5,817,187.42 -0.08 0.78 08/15/2018 818,568.75 818,569 00 0.25 1.03 09/15/2018 72,396.88 72,397.70 0 83 1 86 02/15/2019 158,818,75 158,818.45 -0.30 1.56 03/15/2019 3,577,396.88 3,577,396.01 -0.87 0.69 08/15/2019 9,118,818.75 9,118,818.06 -0.69 22,225,843.75 22,225,843.75 0.00 Jun 22,2016 4 38 pm Prepared by Mumstat Services,Inc Page 21 ESCROW STATISTICS Town of Southold Refundmg of 2008,2009&2011 Bonds Modified Y�eld to Yield ro Perfect Value of , Total Duratwn Rece�pt Disbursement Escrow Negattve Cost of Escrow Escrow Cost (yeazs) Date Date Cost Arbitrage Dead T�me Refunding of 2008 Bonds,Global Proceeds Escrow 6,489,255 Ol 1 586 0 670425% 0 670425% 6,390,949 16 98,305 84 0 01 Refundmg of 2009 Bonds,Global Proceeds Escrow 4,328,019,11 2 285 0 793960% 0.793960% 4,247,275 95 80,691 72 51 44 Refunding o£2011 Bonds,Global Proceeds Escrow l 1,009,022 76 2 654 0 850796% 0 850796% 10,782,688 99 226,333 74 0 03 21,826,296 88 21,420,914 10 405,331 30 51 48 Delrvery date 09/O1/2016 Arbrtrage}neld I 635628% ' Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 22 BOND SLTMMARY STATISTICS Town of Southold Refunding of 2008,2009&2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/O 1/2016 Last Maturity 08/15/2030 Arbitrage Yield 1.635628% True Interest Cost(TIC) 1.921878% Net Interest Cost(NIC) 2.164665% All-In TIC 2.001226% Average Coupon 4.555602% ' Average Life(years) 7.645 Duration of Issue(years) 6.691 Par Amount 18,560,000.00 Bond Proceeds 22,037,779.45 Total Interest 6,463,758.33 Net Interest 3,071,354.88 Total Debt Service 25,023,758 33 Maximum Annual Debt Service 1,880,975.00 Average Annual Debt Service 1,793,103.70 Underwriter's Fees(per$1000) Aderage Takedown OtherFee 4.600000 Total Underwriter's Discount 4.600000 Bid Price 118.278036 Par Average Average Bond Component Value Price Coupon Life Ref of 08s , 5,560,000.00 117.876 4.563% 7.216 Bond Component 13,000,000.00 119.107 4.553% 7.828 18,560,000.00 7.645 All-In Arbitrage TIC TIC Yield Par Value 18,560,000.00 18,560,000.00 18,560,000.00 +Accrued Interest +Premium(Discount) 3,477,779.45 3,477,779.45 3,477,779.45 -Underwriter's Discount -85,376.00 -85,376.00 =Cost of Issuance Expense -115,000.00 -Other Amounts Target Value 21,952,403.45 21,837,403.45 22,037,779.45 Target Date 09/O1/2016 09/O1/2016 09/O1/2016 Yield 1.921878% 2.001226% 1.635628% . • Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 23 FORM 8038 STATISTICS Town of Southold Refunding of 2008,2009&2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Ref of 08s: 09/15/2,016 100,000.00 2.000% 100.050 100,050.00 100,000 00 03/15/2017 340,000.00 3.000% 101.207 344,103.80 340,000.00 03/15/2018 360,000.00 3.000% 103.279 371,804.40 360,000.00 03/]5/2019 355,000.00 3 000% 105.259 373,669.45 355,000.00 03/15/2020 355,000.00 4.000% 110.405 391,937.75 355,000.00 03/15/2021 375,000.00 4.000% 112.804 423,015.00 375,000.00 , 03/15/2022 375,000.00 5.000% 120.007 450,026.25 375,000 00 03/15/2023 375,000.00 5.000% 122.769 460,383.75 375,000.00 • 03/15/2024 405,000.00 5.000% 125.264 507,319.20 405,000 00 03/15/2025 405,000.00 5.000% 127 492 516,342.60 405,000 00 03/15/2026 405,000.00 5.000% 129.454 524,288.70 405,000.00 03/15/2027 410,000.00 5.000% 128.335 526,173.50 410,000.00 03/15/2028 435,000.00 5.000% 127.428 554,311.80 435,000.00 03/15/2029 435,000.00 4.000% 117.289 510,207.15 435,000.00 03/15/2030 430,000.00 4.000%. 116.345 500,283.50 430,000.00 Bond Component. 09/15/2016 70,000.00 2.000% 100.050 70,035.00 70,000.00 03/15/2017 195,000.00 3.000% 101.207 197,353.65 195,000.00 08/15/2017 570,000.00 3.000% 102.118 582,072.60 570,000.00 03/15(2018 205,000.00 3.000% 103.279 211,721.95 205,000.00 08/15/2018 560,000 00 3.000% 104.140 583,184.00 560,000,00 03/15/2019 205,000.00 3.000% 105.259 215,780.95 205,000.00 08/15/2019 575,000.00 3.000% 106.080 609,960.00 575,000.00 03/15/2020 215,000.00 4.000% 110.405 237,370.75 215,000.00 08/15/2020 580,000.00 4.000% 111.564 647,071.20 580,000.00 03/15/2021 220,000.00 4.000% 112.804 248,168.80 220,000.00 08/15/2021 610,000.00 4.000% 113.845 694,454.50 610,000.00 ' 03/15/2022 230,000.00 5.000% 120.007 276,016.10 230,000 00 08/15/2022 635,000.00 5.000% 121.393 770,845.55 635,000.00 03/15/2023 245,000.00 5.000% 122.769 300,784.05 245,000.00 08/15/2023 660,000.00 5.000% 124.078 818,914 80 660,000.00 03/15/2024 265,000.00 5.000% 125.264 331,949 60 265,000.00 08/15/2024 680,000.00 5,000% 126 496 860,172.80 680,000.00 03/15/2025 275,000.00 5.000% 127.492 350,603.00 275,000.00 08/15/2025 720,000.00 5 000% 128.647 926,258.40 720,000.00 03/15/2026 290,000.00 5.000% 129.454 375,416.60 290,000.00 08/15/2026 680,000.00 5.000% 130.425 886,890.00 680,000.00 03/15/2027 305,000.00 5.000% 128.335 391,421.75 305,000.00 08/15/2027 715,000.00 5.000% _ 129.257 924,187.55 715,000.00 03/15/2028 310,000.00 5.000% 127.428 395,026.80 310,000.00 08/15/2028 745,000.00 5 000% 128.415 956,691.75 745,000.00 03(15/2029 325,000.00 4.000% 117.289 381,189.25 325,000.00 08/15/2029 775,000.00 4.000% 117.774 912,748.50 775,000.00 03/15/2030 335,000.00 4.000% 116.345 389,755.75 335,000.00 08/15/2030 805,000.00 4.000% 116.499 937,816.95 805,000.00 18,560,000.00 22,037,779.45 18,560,000.00 . ' Jun 22,2016 4•38 pm Prepared by Munistat Services,Inc. Page 24 FORM 8038 STATTSTICS Town of Southold Refunding of 2008,2009&2011 Bonds Stated Weighted Maturity Interest Issue Redemption Average . Date Rate Price at Maturity Maturity Yield Final Maturity 08/15/2030 4.000% 937,816.95 805,000.00 Entire Issue 22,037,779.45 18,560,000.00 7 8665 1 6356% Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs(including underwriters'discount) 200,376.00 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues 0.00 Proceeds used to advance refund prior issues 21,826,296.88 Remaining weighted average maturity of the bonds to be currently refunded 0.0000 Remaining weighted average maturity of the bonds to be advance refunded 7.5864 . • Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 25 FORM 8038 STATISTICS Town of Southold Refunding of 2008,2009&2011 Bonds Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Publtc Improvement Bonds 2008: 08 BONDS 05/15/2017 375,000.00 4.000% 104.224 390,840.00 08 BONDS OS/15/2018 400,000.00 4.000% 103.334 413,336.00 08 BONDS OS/15/2019 400,000.00 4.000% 102.488 409,952.00 08 BONDS OS/15/2020 400,000.00 4.000% 101.651 406,604.00 ' 08 BONDS OS/15/2021 425,000.00 4.000% 100.821 428,489.25 08 BONDS OS/15/2022 425,000.00 4.000% 100.000 425,000:00 08 BONDS OS/15/2023 425,000.00 4.000% 99.442 422,628.50 08 BONDS OS/15/2024 450,000 00 4.000% 98.835 444,757.50 08 BONDS OS/15/2025 450,000.00 4.125% 99.697 448,636.50 08 BONDS 05/15/2026 450,000.00 4.250% 100.404 451,818.00 08 BONDS OS/15/2027 450,000.00 4.250% 100.000 450,000 00 08 BONDS OS/15/2028 475,000.00 4.250% 99.333 471,831.75 08 BONDS OS/15/2029 475,000.00 4.250% 98.632 468,502.00 08 BONDS OS/15/2030 475,000.00 4.250% 98.245 466,663.75 6,075,000.00 6,099,059 25 Pubilc Improvement Bonds 2009: 09 BONDS 03/15/2017 215,000.00 4.000% 106.698 229,400.70 09 BONDS 03/15/2018 225,000.00 4.000% 106.213 238,979.25 09 BONDS 03/IS/2019 230,000.00 4.000% 105.484 242,613.20 09 BONDS 03/15/2020 240,000.00 4.000% 102,910 246,984.00 09 BONDS 03/15/2021 ' 250,000.00 4.000% 101.235 253,087.50 09 BONDS 03/15/2022 260,000.00 4.000% 100.409 261,063.40 09 BONDS 03/15/2023 270,000.00 4.000% 100.000 270,000.00 09 BONDS 03/15/2024 290,000.00 4.000% 98.887 286,772.30 09 BONDS 03/15/2025 300,000.00 4.125% 99.132 297,396.00 09 BONDS 03/15/2026 310,000.00 4.125% 97.904 303,502.40 09 BONDS 03/15/2027 325,000.00 4.250% 98.148 318,981.00 09 BONDS 03/15/2028 330,000.00 4.250% 96.829 319,535.70 09 BONDS 03/15/2029 345,000.00 4.250% 95.707 330,189.15 � 09 BONDS 03/15/2030 355,000.00 4.375% 96.598 342,922.90 3,945,000.00 3,941,427.50 Public Improvement Bonds 2011: 11 BONDS 08/15/2017 640,000.00 3.000% 106.631 682,438.40 11 BONDS 08/15/2018 650,000.00 3.000% 104.912 681,928.00 11 BONDS 08/15/2019 665,000.00 3.000% 103.655 689,305.75 11 BONDS 08/15/2020 675,000.00 3.000% 101.442 684,733.50 11 BONDS 08/15/2021 700,000.00 3.000% 100.000 700,000.00 11 BONDS 08/15/2022 720,000.00 3.125% 99.300 714,960.00 11 BONDS 08/15/2023 740,000.00 3.250% 99.007 732,651.80 11 BONDS 08/15/2024 750,000.00 3.500% 100.000 750,000.00 11 BONDS 08/15/2025 780,000.00 3 625% 99.722 777,831.60 11 BONDS 08/15/2026 735,000.00 3.750% 99.425 730,773.75 Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. - Page 26 ' FORM 8038 STATISTICS Town of Southold Refunding of 2008,2009&2011 Bonds Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Public Improvement Bonds 2011: 11 BONDS 08/15/2027 760,000.00 4.000% 100.687 765,221.20 11 BONDS 08/15/2028 785,000.00 4.000% 100.000 785,000.00 11 BONDS 08/15/2029 810,000.00 4.000% 99.104 802,742.40 11 BONDS 08/15/2030 840,000.00 4.000% 98.029 823,443.60 10,250,000.00 10,321,030.00 20,270,000.00 20,361,516.75 Remaining Last Weighted Call Issue Average Date Date Maturity Public Improvement Bonds 2008 OS/15/2018 05/15/2008 7.4239 Pubilc Improvement Bonds 2009 03/15/2019 03/15/2009 7.5531 Public Improvement Bonds 2011 08/15/2019 06/29/2011 7.6952 All Refunded Issues 08/15/2019 7.5864 . , Jun 22,2016 4:38 pm Prepared by Mumstat Services,Inc. Page 27 SOURCES AND USES OF FUNDS Town of Southold Refunding of 2008 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Sources: Bond Proceeds: Par Amount 5,560,000.00 Premium 993,916.85 6,553,916.85 Uses: Refunding Escrow Deposits: Cash Deposit 0.01 � SLGS Purchases 6,489,255.00 6,489,255.01 Delivery Date Expenses. Cost of Issuance 34,450.43 Underwriter's Discount 25,576.00 • 60,026.43 Other Uses of Funds: Additiona]Proceeds 4,635.41 6,553,916.85 . f Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 28 SUMMARY OF REFiJNDING RESULTS Town of Southold , Refunding of 2008 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Arbitrage yield 1.635628% Escrow yield 0.670425% Value of Negative Arbitrage 98,305.84 Bond Par Amount � 5,560,000.00 True Interest Cost 1.912270% Net Interest Cost 2.149705% Average Coupon 4.563242% Average Life 7.216 Par amount of refunded bonds 6,075,000.00 Average coupon ofrefunded bonds 4.160847% Average life of refunded bonds 7.483 PV of prior debt to 09/O1/2016 @ 1.635628% 7,205,819.34 Net PV Savings 566,736.09 Percentage savings of refunded bonds 9.328989% Percentage savings of refunding bonds 10,193095% . , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 29 SAVINGS Town of Southold Refunding of 2008 Bonds Present Value Prior Refunding Annual to 09/O1/2016 Date Debt Service Debt Service Savings Savings @ 1.6356277% 09/15/2016 109,253.61 -109,253.61 -109,184.42 11/15/2016 124,687.50 124,687.50 124,270.69 12/31/2016 15,433.89 03/15/2017 457,975.00 -457,975.00 -453,972.32 OS/15/2017 499,687.50 499,687.50 493,977.30 09/15/2017 112,875.00 -112,875.00 -110,980.86 11/15/2017 117,187.50 117,187.50 114,908.60 12/31/2017 46,025.00 03/15/2018 472,875.00 -472,875.00 -461,168.26 OS/15/2018 517,187.50 517,187.50 503,016.21 09/15/2018 107,475.00 -107,475.00 -103,964.06 11/I S/2018 109,187.50 109,187.50 105,334.25 12/31/2018 46,025.00 03l15/2019 462,475.00 -462,475.00 -443,738.14 OS/15/2019 509,187.50 509,187.50 487,233.50 09/IS/2019 102,150.00 -102,150.00 -97,216.41 11/15/2019 101,187.50 101,187.50 96,039.30 12/31/2019 45,750.00 03/15/2020 457,150.00 -457,150.00 -431,541.60 05/15/2020 501,187.50 501,187.50 471,829.49 09/15/2020 95,050.00 -95,050.00 -88,997.70 11/15/2020 93,187.50 93,187.50 87,017.23 12/31/2020 42,175.00 03/15/2021 470,050.00 -470,050.00 -436,549.46 OS/IS/2021 518,187.50 518,187.50 479,951.37 09/15(2021 87,550.00 -87,550.00 -80,650.72 11/15/2021 84,687.50 84,687.50 77,802.28 12/31/2021 45,275.00 03/15/2022 462,550.00 -462,550.00 -422,642.85 OS/15/2022 509,687.50 509,687.50 464,450.82 09/15/2022 78,175.00 -78,175.00 -70,850.91 11/15/2022 76,187.50 76,187.50 68,862.41 12/31/2022 45,150.00 03/IS/2023 453,175.00 -453,175.00 -407,386.13 OS/15/2023 501,187.50 501,187.50 449,325.88 09/15/2023 68,800.00 -68,800.00 -61,346.73 , 11/15/2023 67,687.50 67,687.50 60,191.12 12/31/2023 46,900.00 03/15/2024 473,800.00 -473,800.00 -419,045.13 OS/15/2024 517,687.50 517,687.50 456,619.37 09/15/2024 58,675.00 -58,675.00 -51,473.25 11/15/2024 58,687.50 58,687.50 51,344.62 12/31/2024 43,900.00 03/15/2025 463,675.00 -463,675.00 -403,464.07 OS/15/2025 508,687.50 508,687.50 441,431.34 09/15/2025 48,550.00 -48,550.00 -41,902.81 11/15/2025 49,406.25 49,406.25 42,526.21 12(31/2025 45,868.75 03/15/2026 453,550.00 -453,550.00 -388,277.13 OS/15/2026 499,406.25 499,406.25 426,374.79 09/15/2026 38,425.00 -38,425.00 -32,628.21 11/15/2026 39,843.75 39,843.75 33,741.20 12/31/2026 47,275.00 • 7un 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 30 SAVINGS Town of Southold Refunding of 2008 Bonds Present Value Prior Refunding Annual to 09/O1/2016 Date Debt Service Debt Service Savings Savings @ 1.6356277% 03/15/2027 448,425.00 -448,425.00 -377,686.88 OS/15/2027 489,843.75 489,843.75 ' 411,453.31 09/15/2027 28,175.00 -28,175 00 -23,537.96 Il/15/2027 30,281.25 30,281.25 25,228.97 12/31/2027 43,525.00 03/15/2028 463,175.00 -463,175 00 -383,806.78 05/15/2028 505,281.25 505,281.25 417,562.63 09/15/2028 17,300.00 -17,300.00 -14,219.24 I1/15/2028 20,187.50 20,187.50 16,547.55 12/31/2028 44,993.75 03/15/2029 452,300.00 -452,300.00 -368,739.42 � OS/15/2029 495,187.50 495,187.50 402,609.08 09/15/2029 8,600.00 -8,600.00 -6,954.31 11/15/2029 10,093.75 10,093.75 8,140.09 12/31/2029 44,381.25 03/15/2030 438,600.00 -438,600.00 -351,792.89 OS/15/2030 485,093 75 � 485,093 75 388,029.74 12/31/2030 46,493.75 8,040,000.00 7,390,828.61 649,171.39 649,171.39 562,100.68 Savings Summarv � PV of savings from cash flow 562,100.68 - Plus:Refunding funds on hand 4,635.41 Net PV Savings 566,736.09 , s Jun 22,2016 4 38 pm Prepazed by Mun�stat Sernces,Inc Page 31 BOND PRICING Town ofSouthold Refunding of 2008 Bonds Matunry Y�eld to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Pnce Matunty Date Pnce for Arb Yield for Arb Yield Ref of 08s 09/IS/2016 ]00,000 2 000% 0 700% 100 O50 03/15/2017 340,000 3.000% 0 750% 101.207 03/15/2018 360,000 3 000% 0 850% 103 279 03/15/2019 355,000 3 000% 0 900% ]OS 259 03/15/2020 355,000 4 000% I 000% 110.405 03/15/2021 375,000 4 000% 1 100% 112 804 03/15/2022 375,000 5 000% 1 250% I20 007 03/15/2023 375,000 5 000% 1 350% 122.769 03/15/2024 405,000 5 000% 1 450% 125 264 03/15/2025 405,000 5.000% 1 550% 127 492 03/IS/2026 405,000 5000% 1650% 129454 03/15/2027 410,000 5 000% 1 760% 128 335 C 2 004% 03/15/2026 100 000 03/15/2026 100 000 03/15/2028 435,000 5 000% 1 850% 127 428 C 2 283% 03/15/2026 100 000 03/15/2026 100 000 03/IS/2029 435,000 4 000% 2 000% 117 289 C 2.395% 03/15/2026 100 000 03/IS/2026 100 000 03/IS/2030 430,000 4 000% 2 100% I16 345 C 2 563% 03/15/2026 100 000 03l15/2026 100 000 5,560,000 Dated Date 09/O1/2016 Dehvery Date 09/O1/2016 Fast Coupon 09/15/2016 Par Amount 5,560,000 00 Prem�um 993,916 85 Production 6,553,916 85 1 l7 876202% Underwriter's Discount -25,576 00 -0 460000% Purchase Pnce 6,528,340 85 117 416202% Accrued Interest Net Proceeds 6,528,340 85 , , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 32 BOND DEBT SERVICE Town of Southold Refundmg of 2008 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 09/15/2016 100,000 2.000% 9,253.61 109,253.61 12/31/2016 109,253.61 03/15/2017 340,000 3.000% 117,975.00 457,975.00 09/15/2017 112,875.00 112,875.00 12/31/2017 570,850.00 03/15/2018 360,000 3.000% 112,875.00 472,875.00 09/15/2018 107,475.00 107,475.00 12/31/2018 580,350.00 03/15/2019 355,000 3.000% 107,475.00 462,475.00 09/15/2019 102,150.00 102,150.00 12/31/2019 564,625.00 03/15/2020 355,000 4.000% 102,150.00 457,150.00 09/15/2020 95,050.00 95,050.00 12/31/2020 552,200.00 03/15/2021 375,000 4.000% 95,050.00 470,050.00 09/15/2021 87,550.00 87,550.00 12/31/2021 557,600.00 03/15/2022 375,000 5.000% 87,550.00 462,550.00 09/15/2022 78,175.00 78,175.00 12/31/2022 540,725.00 03/15/2023 375,000 5.000% 78,175.00 453,175.00 09/15/2023 68,800.00 68,800.00 � 12/31/2023 521,975.00 03/15/2024 405,000 5.000% 68,800.00 473,800.00 09/15/2024 58,675.00 58,675.00 12/31/2024 ' S32,475.00 03/15/2025 405,000 5.000% 58,675.00 463,675.00 09/15/2025 48,550.00 48,550.00 12/31/2025 512,225.00 . 03/15/2026 405,000 5.000% 48,550.00 453,550.00 09/15/2026 38,425.00 38,425.00 12/31/2026 491,975.00 03/15/2027 410,000 5.000% 38,425.00 448,425.00 09/IS/2027 28,175.00 28,175.00 12/31/2027 476,600.00 03/15/2028 435,000 5.000% 28,175 00 463,175.00 09/15/2028 17,300.00 17,300.00 12/31/2028 480,475.00 03/15/2029 435,000 4.000% 17,300.00 452,300.00 09/15/2029 8,600.00 8,600.00 12/31/2029 460,900.00 03/15/2030 430,000 4.000% 8,600,00 438,600.00 12/31/2030 438,600.00 5,560,000 1,830,828.61 7,390,828.61 7,390,828.61 , , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 33 PRIOR BOND DEBT SERVICE Town of Southold Refunding of 2008 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/15/2016 124,687.50 124,687.50 12/31/2016 124,687.50 05/15/2017 375,000 4.000% 124,687 50 499,687.50 11/15/2017 117,187.50 117,187.50 12/31/2017 616,875 00 OS/15/2018 400,000 4.000% 117,187.50 517,187.50 11/15/2018 109,187.50 109,187.50 12/31/2018 626,375.00 OS/15/2019 400,000 4.000% 109,187.50 509,187.50 11/15/2019 101,187.50 101,187.50 12/31/2019 610,375.00 OS/15/2020 400,000 4 000% 101,187.50 501,187.50 11/15/2020 93,187.50 93,187.50 12/31/2020 594,375.00 05/15/2021 425,000 4.000% 93,187.50 518,187.50 11/15/2021 84,687.50 84,687.50 12/31/2021 602,875.00 OS/15/2022 425,000 4.000% 84,687.50 509,687.50 11/15/2022 76,187.50 76,187.50 12/31/2022 585,875.00 OS/15/2023 425,000 4.000% 76,187.50 501,187.50 I1/15/2023 67,687.50 67,687.50 � 12/31/2023 568,875.00 05/15/2024 450,000 4.000% 67,687.50_ 517,687.50 11/l5/2024 58,687.50 58,687.50 � 12/31/2024 576,375.00 OS/15/2025 450,000 4.125% 58,687.50 508,687.50 11/15/2025 49,406.25 49,406.25 , 12/31/2025 558,093.75 OS/15(2026 450,000 4.250% 49,406.25 499,406.25 I1/15/2026 39,843.75 39,843 75 12/31/2026 539,250.00 OS/15/2027 450,000 4.250% 39,843.75 489,843.75 11/15/2027 30,281.25 30,281.25 12/31/2027 520,125.00 OS/15/2028 475,000 4 250% 30,281.25 505,281.25 11/IS/2028 20,187.50 20,187.50 12/31/2028 525,468.75 OS/15/2029 475,000 4.250% 20,187.50 495,187.50 11/15/2029 10,093.75 10,093.75 12/31/2029 � 505,281.25 OS/15/2030 475,000 4.250% 10,093 75 485,093.75 12/31/2030 485,093.75 6,075,000 1,965,000.00 8,040,000.00 8,040,000.00 � , Jun 22,2016 4•38 pm Prepared by Munistat Services,Inc. Page 34 SUMMARY OF BONDS REFiJNDED Town of Southold Refunding of 2008 Bonds Maturity Interest Par Call Call Bond Date Rate Amount Date Price Public Improvement Bonds 2008,2008BOND: 08 BONDS� OS/15/2017 4.000% 375,000.00 OS/15/201,8 4.000% 400,000.00 OS/15/2019 4.000% 400,000.00 OS/15/2018 100.000 OS/15/2020 4.000% 400,000.00 OS/15/2018 100.000 � OS/15/2021 4.000% 425,000.00 OS/15/2018 100.000 OS/15/2022 4.000% 425,000.00 OS/15/2018 100.000 OS/15/2023 4 000% 425,000.00 OS/15/2018 100.000 OS/15/2024 4.000% 450,000.00 OS/15/2018 100.000 OS/15/2025 4.125% 450,000.00 OS/15/2018 100.000 05/15/2026 4.250% 450,000 00 OS/15/2018 100.000 05/15/2027 4.250% 450,000.00 OS/15/2018 100.000 OS/15/2028 4.250% 475,000.00 OS/15/2018 100.000 OS/15/2029 4.250% 475,000 00 OS/15/2018 100,000 OS/15/2030 4.250% 475,000.00 OS/15/2018 100.000 6,075,000.00 . Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 35 ESCROW DESCRIPTIONS Town of Southold Refunding of 2008 Bonds Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Sep 1,2016: SLGS Certificate 11/15/2016 11/15/2016 116,477 0.250% 0.250% SLGS Certificate OS/15/2017 OS/15/2017 478,113 0.470% 0.470% SLGS Note 11/15/2017 11/15/2016 97,189 0.590°/a 0.590% SLGS Note OS/15/2018 11/15/2016 5,797,476 0.680°/a 0.680% 6,489,255 SLGS Summarv SLGS Rates File 22JUN16 Total Certificates of Indebtedness 594,590.00 . Total Notes 5,894,665.00 Tota]original SLGS 6,489,255.00 � . Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 36 ' ESCROW COST Town of Southold Refunding of 2008 Bonds Type of Maturity Par Total Security � Date Amount Rate Cost SLGS 11/15/2016 116,477 0.250% 116,477.00 SLGS OS/15/2017 478,113 0470% 478,113.00 SLGS 11/15/2017 97,189 0.590% 97,189.00 SLGS OS/IS/2018 5,797,476 0.680% 5,797,476.00 - 6,489,255 6,489,255.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost Yield 09/O1/2016 6,489,255 0.01 6,489,255.01 0.670425% 6,489,255 0.01 6,489,255.01 • Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 37 ESCROW CASH FLOW Town of Southold Refunding of 2008 Bonds Present Value Net Escrow to 09/01/2016 Date Principal Interest Receipts @ 0.6704255% 11/15/2016 116,477.00 8,211.24 124,688.24 124,516.81 OS/15/2017 478,113.00 21,574.20 499,687.20 497,333.08 11/15/2017 97,189.00 19,998.13 117,187.13 116,245.37 OS/15/2018 5,797,476.00 19,711.42 5,817,187.42 5,751,159.73 6,489,255.00 69,494.99 6,558,749.99 6,489,255.00 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 6,489,255.00 Target for yield calculation 6,489,255.00 • Jun 22,2016 4:35 pm Prepared by Munistat Services,Inc. Page 38 ESCROW SUFFICIENCY Town of Southold Refundtng of 2008 Bonds Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 09/O1/2016 0.01 0.01 0.01 11/15/2016 124,687.50 124,688.24 0.74 0.75 OS/15/2017 499,687.50 499,687.20 -0.30 0.45 11/15/2017 117,187.50 117,187.13 -0.37 0.08 OS/15/2018 5,817,187.50 5,817,187.42 -0.08 6,558,750.00 6,558,750.00 0.00 � • Jun 22,2016 438 pm Prepared by Munistat Services,Inc. Page 39 ESCROW STATISTICS Town of Southold Refunding of 2008 Bonds Modified Yield to Yield to Perfect Value of Total Duration Receipt Disbursement Escrow Negative Cost of Escrow Cost (years) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 6,489,255.01 1.586 0.670425% 0.670425% 6,390,949.16 98,305.84 0.01 6,489,255.01 6,390,949.16 98,305.84 0.01 Delivery date 09/O1/2016 Arbitrage yield 1.635628% . . Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 40 PROOF OF COMPOSITE ESCROW YIELD Town of Southold Refunding of 2008 Bonds All restricted escrows funded bv bond proceeds Present Value Security to 09/O1/2016 Date Receipts @ 0.6704254657% 11/15/2016 124,68 8.24 124,516.81 OS/15/2017 499,687.20 497,333.08 11/15/2017 117,187.13 116,245.37 OS/15/2018 5,817,187.42 5,751,159.73 � 6,558,749.99 6,489,255.00 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 6,489,255.00 Target for yield calculation 6,489,255.00 . • Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 41 PROOF OF ARBTI'RAGE I'IELD Town of Southold Refunding of 2008 Bonds Present Value to 09/O1/2016 Date Debt Service @ 1.6356277275% 09/15/2016 109,253.61 109,184.42 03/15/2017 457,975.00 453,972.32 09/15/2017 112,875.00 110,980.86 03/15/2018 472,875.00 461,168.26 09/15/2018 107,475.00 103,964.06 03/15/2019 462,475.00 443,738.14 09/15/2019 102,150.00 97,216.41 03/15/2020 457,150.00 431,541.60 09/15/2020 95,050.00 88,997.70 03/15/2021 470,050.00 436,549.46 09/15/2021 87,550.00 80,650.72 03/15/2022 462,550.00 422,642.85 09/15/2022 78,175.00 70,850.91 03/15/2023 453,175.00 407,386.13 09/15/2023 68,800.00 61,346.73 03/15/2024 473,800.00 419,045.13 09/IS/2024 58,675.00 51,473.25 03/15/2025 463,675.00 403,464.07 09/15/2025 48,550.00 41,902.81 03/15/2026 2,163,550.00 1,852,181.63 7,205,828.61 6,548,257.47 Proceeds Summarv Delivery date 09/O1/2016 Par Value 5,560,000.00 Premium(Discount) 993,916.85 Tazget for yield calculation 6,553,916.85 . ' Jun 22,2016 4:38 pm Prepazed by Munistat Services,Inc. Page 42 PROOF OF ARBITRAGE I'IELD Town of Southold Refunding of 2008 Bonds Assumed Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Call to 09/01/2016 Component Date Rate Yield Date Price @ 1.6356277275% REF8 03/15/2027 5.000% 1.760% 03/15/2026 100.000 5,19939 REF8 03/15/2028 5.000°/a 1.850°/a 03/15/2026 100.000 9,461.88 REF8 03/15/2029 4.000% 2.000% 03/15/2026 100,000 15,291.14 REF8 03/15/2030 4.000% 2.100% 03/15/2026 100.000 19,174.58 Reiected Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Call to 09/O1/2016 Increase Component Date Rate Yield Date Price @ 1.6356277275% to NPV REF8 03/15/2027 5.000% 1.760% 16,864.86 11,665.47 REF8 03/15/2028 5.000% 1.850% 34,015.45 24,553.57 REF8 03/15/2029 4.000% 2.000% 40,965.79 25,674.65 REFB 03/15/2030 4.000% 2.100% 52,742.07 33,567.49 • Jun 22',2016 4:38 pm Prepared by Mumstat Services,Inc. Page 43 BOND SUMMARY STATISTICS Town of Southold Refunding of 2008 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Last Maturity 03/15/2030 Arbitrage Yield 1.635628% True Interest Cost(TIC) 1.912270% Net Interest Cost(I�IIC) 2.149705% All-In TIC 1.996271% Average Coupon 4.563242% Average Life(years) 7.216 Duration of Issue(years) 6.367 Par Amount 5,560,000.00 Bond Proceeds 6,553,916.85 Total Interest 1,830,828.61 Net Interest 862,487.76 Total Debt Service 7,390,828.61 Maximum Annual Debt Service 580,350.00 Average Annual Debt Service 545,896.25 Underwriter's Fees(per$1000) Average Takedown Other Fee 4.600000 Total Underwriter's Discount 4.600000 Bid Price 117.416202 par Average Average Bond Component Value Price Coupon Life Ref of 08s 5,560,000.00 117 876 4.563% 7.216 5,560,000.00 7.216 � All-In Arbitrage TIC " TIC Yield Par Value 5,560,000.00 5,560,000.00 5,560,000.00 +Accrued Interest +Premium(Discount) 993,916.85 993,916.85 993,916.85 -Underwriter's Discount -25,576.00 -25,576.00 -Cost of Issuance Expense -34,450.43 -Other Amounts Target Value 6,528,340.85 6,493,890.42 6,553,916.85 Target Date 09/O1/2016 09/O1/2016 09/O1/2016 Yield 1.912270% 1.996271% 1.635628% Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 44 FORM 8038 STATISTICS Town of Southold Refundmg of 2008 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Redemption Bond Component Date Prmcipal Coupon Price Issue Price at Maturity Ref of 08s: 09/15/2016 100,000.00 2.000% 100.050 100,050.00 100,000.00 03/15/2017 340,000.00 3.000% 101.207 344,103.80 340,000.00 03/15/2018 360,000.00 3.000% 103.279 371,804.40 360,000.00 03/15/2019 355,000.00 3.000% 105.259 373,669.45 355,000.00 03/15/2020 355,000.00 4.000% 110.405 391,937.75 355,000.00 03/15/2021 375,000.00 4.000% 112.804 423,015.00 375,000.00 03/IS/2022 375,000.00 5.000% 120.007 450,026.25 375,000.00 03/15/2023 375,000.00 5.000% 122.769 460,383.75 375,000.00 03/15/2024 405,000.00 5.000% 125.264 507,319.20 405,000,00 03/15/2025 405,000.00 5.000% 127.492 516,342.60 405,000.00 03/15/2026 405,000.00 5.000% 129.454 524,288.70 405,000.00 03/15/2027 410,000.00 5.000% 128.335 526,173.50 410,000.00 03/15/2028 435,000.00 5.000% 127.428 554,311.80 435,000.00 03/15I2029 435,000.00 4.000% 117.289 510,207 15 435,000.00 03/15/2030 430,000.00 4.000% 116.345 500,283.50 430,000.00 5,560,000.00 6,553,916.85 5,560,000.00 Stated Weighted MaturiTy Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 03/15/2030 4.000% 500,283.50 430,000.00 Entire Issue 6,553,916.85 5,560,000.00 7.4562 1.6356% Proceeds used for accrued interest 0 00 Proceeds used for bond issuance costs(including underwriters'discount) 60,026.43 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues 0.00 Proceeds used to advance refund prior issues 6,489,255.01 Remaining weighted average maturity of the bonds to be currently refunded 0.0000 Remaining weighted average maturity of the bonds to be advance refunded 7.4239 � , Jun 22,2016 438 pm Prepared by Munistat Services,Inc. Page 45 FORM 8038 STATISTICS Town of Southold Refunding of 2008 Bonds Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Public Improvement Bonds 2008: 08 BONDS 05/15/2017 375,000.00 4.000% 104.224 390,840.00 08 BONDS OS/15/2018 400,000.00 4.000% 103.334 413,336.00 08 BONDS OS/15/2019 400,000.00 4.000% , 102.488 409,952.00 08 BONDS OS/15/2020 400,000.00 4.000% 101.651 406,604.00 08 BONDS OS/15/2021 425,000,00 4.000% 100.821 428,489.25 08 BONDS OS/15/2022 425,000.00 4.000% 100.000 425,000.00 08 BONDS OS/15/2023 425,000.00 4.000% 99.442 422,628.50 08 BONDS OS/15/2024 450,000.00 4.000% 98.835 444,757.50 08 BONDS OS/15/2025 450,000.00 4.125% 99.697 448,636.50 08 BONDS 05/15/2026 450,000.00 4.250% 100.404 451,818.00 08 BONDS OS/15/2027 450,000.00 4.250% 100.000 450,000.00 08 BONDS OS/15/2028 475,000.00 4.250% 99.333 471,831.75 08 BONDS OS/15/2029 475,000 00 4.250% 98.632 468,502.00 08 BONDS OS/15/2030 475,000.00 4 250% 98.245 466,663.75 6,075,000.00 6,099,059.25 Remaining Last Weighted Call Issue Average Date Date Maturity Public Improvement Bonds 2008 OS/15/2018 OS/15/2008 7.4239 All RefundedIssues OS/15/2018 7.4239 . # • Jun 22,2016 4:38 pm Prepared by Mumstat Services,Inc. Page 46 SOURCES AND USES OF FUNDS Town of Southold Refunding of 2009 Bonds Dated Date 09I01/2016 Delivery Date 09/O1/2016 Sources: Bond Proceeds: ' Par Amount 3,690,000.00 Premium 682,594.00 4,372,594.00 Uses: Refunding Escrow Deposits. Cash Deposit 81,197.11 SLGS Purchases 4,246,822.00 ' 4,328,019.11 Delivery Date Expenses: � Cost of Issuance 22,863.69 Underwriter's Discount 16,974.00 39,837.69 Other Uses of Funds: Additional Proceeds 4,737.20 4,372,594.00 � , Jun 22,2016 4;38 pm Prepared by Munistat Services,Inc. Page 47 _ SLJMMARY OF REFUNDING RESLJLTS Town of Southold Refunding of 2009 Bonds Dated Date 09/O1/2016 Delivery Date 09/O 1/2016 Arbitrage yield 1.635628% Escrow yield- 0.793960% Value of Negative Arbitrage 80,691.72 Bond Par Amount 3,690,000.00 True Interest Cost 1.951045% Net Interest Cost 2.194287% Average Coupon 4.563589% Average Life 7.613 Par amount of refunded bonds 3,945,000.00 Average coupon of refunded bonds 4.177587% Average life of refunded bonds 7•682 PV of prior debt to 09/O1/2016 @ 1.635628% 4,728,669.21 Net PV Savings 285,817.08 Percentage savings ofrefunded bonds 7.245046% Percentage savings of refunding bonds 7.745720% � � , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 48 SAVINGS Town of Southold Refunding of 2009 Bonds Present Value Prior Refunding Annual to 09/O1/2016 Date Debt Service Debt Service Savings Savings @ 1.6356277% 09/15/2016 81,196.88 76,196.94 4,999.93 4,996.76 12/31/2016 4,999.93 03/15/2017 296,196.88 273,975.00 22,221.88 22,027.66 09/15/2017 76,896.88 76,050.00 846.88 832.66 12/31/2017 23,068.75 03/15/2018 301,896.88 281,050.00 20,846.88 20,330.78 09/15/2018 72,396.88 72,975.00 -578.13 -559.24 12/31/2018 20,268.75 03/15/2019 302,396.88 277,975.00 24,421.88 23,432.44 09/15/2019 67,796.88 69,900.00 -2,103.13 -2,001.55 " 12/31/2019 22,318.75 03/15/2020 307,796.88 284,900.00 22,896.88 21,614.25 09/15/2020 62,996.88 65,600.00 -2,603.13 -2,437.37 • 12/31/2020 20,293.75 03/15/2021 312,996.88 285,600.00 27,396.88 25,444.30 09/15/2021 57,996.88 61,200.00 -3,203.13 -2,950.71 12/31/2021 24,193.75 03/15/2022 317,996.88 291,200.00 26,796.88 24,484.94 09/15/2022 52,796.88 55,450.00 -2,653.13 -2,404.56 12/31/2022 24,143.75 03/15/2023 322,796.88 300,450.00 22,346.88 20,088.94 09/15/2023 47,396.88 49,325.00 -1,928.13 -1,719.25 12/31/2023 20,418.75 03/15/2024 337,396.88 314,325.00 23,071.88 20,405.57 09/15/2024 41,596.88 42,700.00 -1,103.13 -967.73 12/31/2024 21,968.75 03/15/2025 341,596.88 317,700.00 23,896.88 20,793.73 09/15/2025 35,409.38 35,825.00 -415.63 -358.72 12/31/2025 23,481.25 03/15/2026 345,409.38 325,825.00 19,584 38 16,765.88 09/IS/2026 29,015.63 28,575.00 440.63 374.15 12/31/2026 20,025.00 03/15/2027 354,015.63 333,575.00 20,440 63 17,216.16 09/15/2027 22,109.38 20,950.00 1,159.38 968.56 12/31/2027 21,600 00 03/15/2028 352,109.38 330,950.00 21,15938 17,533.57 � 09/15/2028 15,096.88 13,200.00 1,896.88 1,559.08 . 12/31/2028 23,056.25 03/15/2029 360,096.88 338,200.00 21,896.88 17,851.52 09/15/2029 7,765.63 6,700.00 1,065.63 861.71 � 12/31/2029 22,962.50 03/15/2030 362,765.63 341,700.00 21,065.63 16,896.35 12/31/2030 21,065.63 5,285,937.50 4,972,071.94 313,865.56 313,865 56 281,079.88 ! ' Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 49 SAVINGS Town of Southold, Refunding of 2009 Bonds Savings Summarv PV of savings from cash flow 281,079.88 Plus:Refunding funds on hand 4,737.20 Net PV Savings 285,817.08 Jun 22,2016 4 38 pm Prepared by Munistat Services,Inc Page 50 BOND PRICING ' Town of Southold Refundm�oF2009 Bonds Matunty Yield to Call Call Call Date Call Pnce Bond Component Date Amount Rate Y�eld Pnce Matunty Date Price for Arb Yield for Arb Yield Bond Component 09/IS/2016 70,000 2 000% 0 700% 100 O50 03/15/2017 195,000 3 000% 0 750% 101 207 03/15/2018 205,000 3 000% 0 850% 103 279 03/15/2019 205,000 3 000% 0 900% 105 259 03/IS/2020 215,000 4000% 1000% 110405 03/15/2021 220,000 4 000% 1 100% 112 804 03/15/2022 230,000 5 000% 1 250% 120 007 03/15(2023 245,000 5 000% 1 350% 122 769 03/IS/2024 265,000 5 000% 1 450% 125 264 03/15/2025 275,000 5 000% 1 550% 127 492 03/15/2026 290,000 5 000% I 650% 129 454 03/15/2027 305,000 5 000% 1 760% 128 335 C 2 004% 03/15/2026 100 000 03/15/2026 100 000 03/]5/2028 310,000 5.000% 1 850% 127 428 C 2 283% 03/15/2026 100 000 03/15/2026 100 000 03/15/2029 325,000 4 000°/a 2 000% 117 289 C 2 395% 03/15/2026 100 000 03/15/2026 100 000 03/15/2030 335,000 4 000% 2 100% 116.345 C 2 563% 03/15/2026 100 000 03/15/2026 100 000 3,690,000 Dated Date 09/O1/2016 Delrvery Date 09/O1/2016 First Coupon 09/15/2016 Par Amount 3,690,000 00 Premium 652,594 00 � Production 4,372,594 00 118 498482% Underwnter's Discount -16,974 00 -0 460000% Purchase Pnce 4,355,620 00 118 038482% Accrued Interest Net Proceeds 4,355,620 00 . � y , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 51 BOND DEBT SERVICE Town of Southold Refunding of 2009 Bonds , Penod Annual Ending Principal Coupon Interest Debt Service Debt Service 09/15/2016 70,000 2.000% 6,196.94 76,196.94 12/31/2016 76,196.94 03/15/2017 195,000 3.000% 78,975.00 273,975.00 � 09/15/2017 76,050.00 76,050.00 12/31/2017 350,025.00 03/15/2018 205,000 3.000% 76,050.00 281,050.00 09/15/2018 72,975.00 72,975.00 12/31/2018 354,025.00 03/15/2019 205,000 3.000% 72,975.00 277,975.00 09/15/2019 69,900.00 69,900.00 12/31/2019 347,875.00 03/15/2020 215,000 4.000% 69,900.00 284,900.00 09/15/2020 65,600.00 65,600.00 12/31/2020 350,500.00 03/15/2021 220,000 4.000% 65,600.00 285,600.00 09/15/2021 61,200.00 61,200.00 12/31/2021 346,800.00 03/IS/2022 230,000 5.000% 61,200.00 291,200.00 09/15/2022 55,450.00 55,450.00 12/31/2022 346,650 00 03/15/2023 245,000 5 000% 55,450.00 300,450.00 09/15/2023 49,325.00 49,325.00 12/31/2023 349,775.00 03/15/2024 265,000 5.000% 49,325.00 314,325.00 09/15/2024 42,700.00 42,700.00 12/31/2024 357,025.00 03/15/2025 275,000 5.000% 42,700.00 317,700.00 09/15/2025 35,825.00 35,825.00 12/31/2025 353,525.00 03/15/2026 290,000 5.000% 35,825.00 325,825.00 09/15/2026 28,575.00 28,575.00 12/31/2026 354,400.00 03/15/2027 305',000 5.000% 28,575.00 333,575.00 09/15/2027 20,950.00 20,950.00 ' 12/31/2027 354,525.00 03/15/2028 310,000 5 000% 20,950.00 330,950.00 09/15/2028 13,200.00 13,200.00 12/31/2028 344,150.00 03/15/2029 325,000 4.000% 13,200.00 338,200.00 09/15/2029 6,700.00 6,700.00 12/31/2029 344,900.00 03/15/2030 335,000 4.000% 6,700.00 341,700.00 12/31/2030 341,700.00 3,690,000 1,282,071.94 4,972,071.94 4,972,071.94 , . Jun 22,2016 4.38 pm Prepared by Mumstat Services,Inc. Page 52 PRIOR BOND DEBT SERVICE Town of Southold Refunding of 2009 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 09/15/2016 81,196.88 81,196.88 12/31/2016 81,196.88 03/15/2017 215,000 4.000% 81,196.88 296,196.88 09/15/2017 76,896.88 76,896.88 12/31/2017 373,093.75 03/15/2018 225,000 4.000% 76,896.88 301,896.88 09/15/2018 72,396.88 72,396.88 12/31/2018 374,293.75 03/15/2019 230,000 4.000% 72,396.88 302,396.88 09/15/2019 67,796.88 67,796.88 12/31/2019 370,193.75 03/15/2020 240,000 4.000% 67,796.88 307,796.88 � 09/15/2020 62,996.88 62,996.88 12/31/2020 370,793.75 03/15/2021 250,000 4.000% 62,996.88 312,996.88 09/15/2021 57,996,88 57,996.88 12/31/2021 370,993.75 03/15l2022 260,000 4 000% 57,996.88 317,996.88 09/15/2022 52,796.88 52,796.88 12/31/2022 370,793.75 03/15/2023 270,000 4 000% 52,796.88 322,796.88 09/15/2023 47,396.88 47,396.88 12/31/2023 370,193.75 03/15/2024 290,000 4.000% 47,396.88 337,396.88 09/15/2024 41,596.88 41,596.88 12/31/2024 378,993.75 03/15/2025 300,000 4.125% 41,596.88 341,596.88 09/15/2025 35,409.38 35,409.38 12/31/2025 377,006.25 03/15/2026 310,000 4.125% 35,409.38 345,409.38 09/15/2026 29,015.63 29,015.63 12/31/2026 374,425.00 03/15/2027 325,000 4.250% 29,015.63 354,015.63 09/15/2027 22,10938 22,109.38 12/31/2027 376,125.00 03/15/2028 330,000 4.250% 22,109.38 352,109.38 09/15/2028 15,096 88 15,096.88 12/31/2028 367,206.25 03/15/2029 345,000 4.250% 15,096.88 360,096.88 09/15/2029 7,765.63 7,765.63 12/31/2029 367,862.50 03/IS/2030 355,000 4.375% 7,765.63 362,765.63 12/31/2030 - 362,765.63 3,945,000 1,340,937.50 5,285,937.50 5,285,937.50 � * Jun 22,2016 4:38 pm Prepared by Mumstat Services,Inc. Page 53 SUMMARY OF BONDS REFUNDED Town of Southold Refundmg of 2009 Bonds Maturity Interest Par Call Call Bond Date Rate Amount Date Price Pubilc Improvement Bonds 2009,2009BOND: 09 BONDS 03/15/2017 4.000% 215,000.00 03/15/2018 4.000% 225,000.00 03/15/2019 4.000% 230,000.00 03/15/2020 4.000% 240,000.00 03/15/2019 100 000 03/15/2021 4.000% 250,000.00 03/15/2019 100.000 03/15/2022 4.000% 260,000.00 03/15/2019 100.000 03/15/2023 4.000% 270,000.00 03/15/2019 100.000 03/15/2024 4.000% 290,000.00 03/15/2019 100.000 03/15/2025 4.125% 300,000.00 03/15/2019 100.000 03/15/2026 4.125% 310,000.00 03/15/2019 100.000 � 03/15/2027 4.250% 325,000.00 03/15/2019 100.000 03/15/2028 4.250% 330,000.00 03/15/2019 100.000 03/15/2029 4.250% 345,000.00 03/15/2019 100.000 03/15/2030 4.375% 355,000 00 03/15/2019 100.000 3,945,000.00 � � Jun 22,2016 4:38'pm Prepared by Munistat Services,Inc. Page 54 ESCROW DESCRIPTIONS Town of Southold Refunding of 2009 Bonds Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Sep 1,2016: SLGS Certificate 03/15/2017 03/15/2017 278,628 0.420% 0.420% SLGS Note 09/15/2017 03/15/2017 61,152 0.560% 0.560% SLGS Note 03/15/2018 03/15/2017 286,322 0.650% 0.650% SLGS Note 09/15/2018 03/15/2017 57,754 0.740% 0.740°/a SLGS Note 03(15/2019 03/15/2017 3,562,966 0.810% 0.810% 4,246,822 SLGS Summarv SLGS Rates File 22JLJN16 Total Certificates of Indebtedness 278,628.00 Total Notes 3,968,194.00 Total original SLGS 4,246,822.00 � � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 55 ESCROW COST � Town of Southold Refunding of 2009 Bonds Type of Maturity Par Total Security Date Amount Rate Cost SLGS 03/15/2017 278,628 0.420% 278,628.00 SLGS 09/15/2017 61,152 0.560% 61,152.00 SLGS 03/15/2018 286,322 0.650% 286,322.00 SLGS 09/15/2018 ' S7,754 0.740% 57,754 00 SLGS 03/15/2019 3,562,966 0.810% 3,562,966.00 4,246,822 4,246,822.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost Yield 09/01/2016 4,246,822 81,197.11 4,328,019.11 0.793960% 4,246,822 81,197.11 4,328,019.11 i • Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 56 ESCROW CASH FLOW Town of Southold Refunding of 2009 Bonds Present Value Net Escrow to 09/O1/2016 Date Prmcipal Interest Receipts @ 0.7939598% 03/15/2017 278,628.00 17,568.70 296,196.70 294,934.61 09/15/2017 61,152.00 15,745.48 76,897.48 76,267.06 03/15/2018 286,322.00 15,574.25 301,896.25 298,237.29 09/15/2018 57,754.00 14,643.70 72,397.70 71,237.45 03/15/2019 3,562,966.00 14,430.01 3,577,396.01 3,506,145.60 4,246,822.00 77,962.14 4,324,784.14 4,246,822.00 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 4,246,822.00 ' Target for yield calculation 4,246,822.00 � * Jun 22,2016 4:38 pm Prepared by Mumstat Services,Inc Page 57 ESCROW SUFFICIENCY Town of Southold Refunding of 2009 Bonds ' Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 09/O1/2016 81,197.11 81,197.11 81,197.11 09/15/2016 81,196.88 -81,196.88 0.24 03/15/2017 296,196.88 296,196.70 -0,18 0.06 09/15/2017 76,896.88 76,897.48 0.61 0.67 03/15/2018 301,896.88 301,896.25 -0.63 0.04 , 09/15/2018 72,396.88 72,397.70 0.83 0.87 03/15/2019 3,577,396.88 3,577,396.01 -0.87 , 4,405,981.25 4,405,981.25 0.00 � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 58 ESCROW STATISTICS Town of Southold Refunding of 2009 Bonds Modified Yield to Yield to Perfect Value of Total Duration Receipt Disbursement Escrow Negative Cost of _ Escrow Cost (years) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 4,328,019.11 2.285 0.793960% 0.793960% 4,247,275 95 80,691.72 51.44 4,328,019.11 4,247,275.95 80,691.72 51.44 Delivery date 09/O1/2016 Arbitrage yield 1.635628% � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 59 PROOF OF COMPOSTI'E ESCROW I'IELD � Town of Southold Refunding of 2009 Bonds - All restricted escrows funded bv bond proceeds Present Value Security to 09/01/2016 Date Receipts @ 0.7939597580% 03/15/2017 296,196.70 294,934.61 09/15/2017 76,897.48 76,267.06 03/15/2018 301,896.25 298,237.29 09/15/2018 72,397.70 71,237.45 03/15/2019 3,577,396.01 3,506,145.60 . 4,324,784.14 4,246,822.00 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 4,246,822.00 Target for yield calculation - � 4,246,822.00 � i Jun 22,2016 438 pm Prepared by Munistat Services,Inc. Page 60 PROOF OF ARBITRAGE 1'IELD Town of Southold Refunding of 2009 Bonds Present Value to 09/O1/2016 Date Debt Service @ 1.6356277275% 09/15/2016 76,196.94 76,148.69 03/15/2017 � 273,975.00 271,580.47 09/15/2017 76,050.00 74,773.82 03/15/2018 281,050.00 274,092.18 09/15/2018 72,975.00 70,591.09 03/15/2019 277,975.00 266,713.03 09/15/2019 69,900.00 66,524.01 03/15/2020 284,900.00 268,940.62 09/15/2020 65,600.00 61,422.93 03/15/2021 285,600.00 265,245.24 09/15/2021 61,200 00 56,377.21 03/15/2022 291,200.00 266,076.31 09/15/2022 55,450.00 50,254.98 03/15/2023 300,450.00 270,092.48 09/15/2023 49,325.00 43,981.51 03/15/2024 314,325.00 277,999.92 09/15/2024 42,700.00 37,459.01 03/15/2025 317,700.00 276,444.79 09/15/2025 35;825.00 30,920.04 03/15/2026 1,600,825.00 1,370,441.47 4,833,221.94 4,376,079.79 Proceeds Summarv Delivery date 09/O1/2016 Par Value 3,690,000.00 Premium(Discount) 682,594.00 Target for yield calculation 4,372,594.00 f � Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. Page 61 � PROOF OF ARBTI'RAGE I'IELD Town of Southold � Refunding of 2009 Bonds Assumed Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Gall to 09/O1/2016 Component Date Rate Yield Date Price . @ 1.6356277275% BOND 03/15/2027 5.000% 1.760% 03/15/2026 100.000 3,867.84 BOND 03/15/2028 5.000% 1.850% 03/15/2026 100.000 6,742.95 BOND 03/15/2029 4.000% 2.000% 03/15/2026 100.000 11,424.42 BOND 03/15/2030 4.000% 2.100% 03/15/2026 100.000 14,938.34 � Reiected Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Call to 09/O1/2016 Increase Component Date Rate Yield Date Price @ 1.6356277275% to NPV BOND 03/15/2027 5.000% 1.760% 12,545.81 8,677.9? BOND 03/15/2028 5.000% 1.850% 24,240.90 17,497.95 BOND 03/15/2029 4.000% 2.000% 30,606.63 19,182.21 BOND 03/15/2030 4.000% 2.100% 41,089.75 26,151.41 . ' � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 62 BOND SLJMMAItY STATISTICS Town of Southold Refunding of 2009 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Last Maturity 03/15/2030 Arbitrage Yield 1.635628% True Interest Cost(TIC) 1.951045% Net Interest Cost(NIC) 2.194287% All-In TIC 2.030953% Average Coupon 4.563589% Average Life(years) 7.613 Duration of Issue(years) 6.658 Par Amount 3,690,000.00 Bond Proceeds 4,372,594.00 Total Interest 1,282,071.94 Net Interest 616,451.94 Total Debt Service 4,972,071.94 Maximum Annual Debt Service 357,025.00 Average Annual Debt Service 367,243.72 Underwriter's Fees(per$1000) Average Takedown OtherFee 4.600000 Total Underwriter's Discount 4.600000 Bid Price 118.038482 Par Average Average Bond Component Value Price Coupon Life Bond Component 3,690,000.00 118.498 4,564% 7.613 3,690,000.00 7.613 All-In Arbitrage TIC TIC Yield Par Value 3,690,000.00 3,690,000.00 3,690,000.00 +Accrued Interest +Premium(Discount) 682,594.00 682,594.00 682,594.00 -Underwriter's Discount -16,974.00 -16,974.00 -Cost of Issuance Expense -22,863.69 -Other Amounts Target Value 4,355,620.00 4,332,756.31 4,372,594.00 Target Date 09/O1/2016 09/O1/2016 09/O1/2016 Yield 1.951045% 2.030953% 1.635628% , 4 � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 63 FORM 8038 STATISTICS Town of Southold Refunding of 2009 Bonds � Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Bond Component: ' 09/15/2016 70,000.00 2.000% 100.050 70,035.00 70,000.00 03/15/2017 195,000.00 3.000% 101.207 197,353 65 195,000.00 03/15/2018 205,000.00 3.000% 103.279 211,721.95 205,000.00 03/15/2019 205,000.00 3.000% 105.259 215,780.95 205,000.00 03/15/2020 215,000.00 4.000% 110.405 237,370 75 215,000.00 03/15/2021 220,000.00 4.000% 112.804 248,168.80 220,000.00 03/15/2022 230,000.00 5.000% 120 007 �276,016.10 230,000 00 03/15/2023 245,000 00 5.000% 122.769 300,784.05 245,000.00 03/15/2024 265,000.00 5.000% 125.264 331,949.60 265,000.00 03/15/2025 275,000 00 5.000% 127.492 350,603.00 275,000.00 03/15/2026 290,000.00 5.000% 129.454 375,416.60 290,000.00 03/15/2027 305,000.00 5.000% 128.335 391,421.75 305,000.00 03/15/2028 310,000 00 5.000% 127.428 395,026.80 310,000.00 03/15/2029 325,000.00 4.000% 117.289 381,189.25 325,000.00 03/15/2030 335,000.00 4.000% 116.345 389,755.75 335,000.00 3,690,000.00 4,372,594.00 3,690,000.00 Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 03/15/2030 4.000% 389,755.75 335,000.00 Entire Issue 4,372,594.00 3,690,000.00 7.8356 1.6356% Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs(including underwriters'discount) 39,837.69 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues � 0.00 Proceeds used to advance refund prior issues 4,328,019.11 Remaining weighted average maturity of the bonds to be currently refunded 0.0000 Remaining weighted average maturity of the bonds to be advance refunded 7.5531 r � � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 64 FORM 8038 STATISTICS Town of Southold Refundmg of 2009 Bonds Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Pubilc Improvement Bonds 2009: 09 BONDS 03/15/2017 215,000.00 4.000% 106.698 229,400.70 09 BONDS 03/15/2018 225,000.00 4.000% 106 213 238,979.25 09 BONDS 03/15/2019 230,000.00 4.000% 105.484 242,613.20 09 BONDS 03/15/2020 , 240,000.00 4.000% 102.910 246,984.00 09 BONDS 03/15/2021 250,000.00 4.000% 101.235 253,087.50 09 BONDS 03/15/2022 260,000.00 4.000% 100.409 261,063.40 09 BONDS 03/15/2023 �270,000.00 4.000% 100.000� 270,000.00 09 BONDS 03/15/2024 290,000.00 4.000% 98.887 286,772.30 " 09 BONDS 03/15/2025 300,000.00 4.125% 99.132 297,396.00 09 BONDS 03/15/2026 310,000.00 4.125% 97.904 303,502.40 09 BONDS 03l15/2027 325,000.00 4.250% 98.148 318,981.00 09 BONDS 03/15/2028 330,000.00 4.250% 96.829 319,535.70 09 BONDS 03/IS/2029 345,000.00 4.250% 95.707 330,189.15 ' 09 BONDS 03/15/2030 355,000.00 4.375% 96.598 342,922.90 3,945,000.00 3,941,427.50 Remaining Last Weighted Call Issue Average Date Date Maturity Pubilc Improvement Bonds 2009 03/15/2019 03/15/2009 7.5531 All Refunded Issues 03/15/2019 7.5531 , � , Jun 22,2016 438 pm Prepared by Munistat Services,Inc. Page 65 SOURCES AND USES OF FUNDS Town of Southold Refunding of 2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Sources: Bond Proceeds: Par Amount 9,310,000.00 Premium 1,801,268.60 11,111,268.60 Uses: Refunding Escrow Deposits: Cash Deposit 0.76 SLGS Purchases 11,009,022.00 11,009,022.76 Delivery Date Expenses: Cost of Issuance 57,685 88 Underwriter's Discount 42,826.00 100,511.88 Other Uses of Funds: Additional Proceeds 1,733.96 11,111,268.60 � � , Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 66 SUMMARY OF REFUNDING RESULTS Town of Southold Refunding of 2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/0 U2016 Arbitrage yield 1.635628% Escrow yield 0.850796% Value ofNegative Arbitrage 226,333.74 • Bond Pai Amount 9,310,000.00 True Interest Cost 1.916009% Net Interest Cost 2.161516% Average Coupon 4.548394% Average Life 7.913 Par amount of refunded bonds 10,250,000 00 Average coupon of refunded bonds 3.685611% Average life of refunded bonds 7.768 PV of prior debt to 09/O1/2016 @ 1.635628% 11,761,361.22 � Net PV Savings 479,830.94 Percentage savings of refunded bonds 4.681277% Percentage savings of refunding bonds 5.153931% r e s Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 67 SAViNGS Town of Southold Refunding of 2011 Bonds Present Value Prior Refunding Annual to 09/O1/2016 Date Debt Service Debt Service Savings Savings @ 1.6356277% . 02/15/2017 178,168.75 183,907.78 -5,739.03 -5,696.60 08/15/2017 818,168.75 771,850.00 46,318.75 45,603.35 12/31/2017 40,579.72 . 02/15/2018 168,568.75 193,300.00 -24,731.25 -24,151.75 08/15/2018 818,568 75 753,300.00 65,268.75 63,222.35 12/31/2018 40,537.50 02/15/2019 158,818.75 184,900.00 -26,081.25 -25,058.58 08/15/2019 823,818.75 759,900.00 63,918.75 60,914.27 12/31/2019 37,837.50 02/15/2020 148,843.75 176,275.00 -27,431.25 -25,929.80 08/15/2020 823,843.75 756,275.00 67,568.75 63,352.26 12/31/2020 40,137.50 02/15/2021 138,718.75 164,675.00 -25,956.25 -24,139.09 08/15/2021 838,718.75 774,675.00 64,043.75 59,077.00 12/31/2021 38,087.50 02/15/2022 128,218.75 152,475.00 -24,256.25 -22,193.62 08/15/2022 848,218.75 787,475.00 60,743.75 55,127.55 - 12/31/2022 36,487.50 02/15/2023 116,968.75 136,600.00 -19,631.25 -17,671.68 08/IS/2023 856,968.75 796,600.00 60,368.75 53,901,98 12/31/2023 40,737.50 02/15/2024 104,943.75 120,100 00 -15,156.25 -13,422.92 08/15/2024 854,943.75 800,100.00 54,843.75 48,177.60 12/31/2024 39,687.50 02/15/2025 91,818 75 103,100 00 -11,281.25 -9,829.65 08/15/2025 871,818.75 823,100.00 48,718.75 42,105.57 12/31/2025 37,437.50 02/15/2026 77,681.25 85,100.00 -7,418.75 -6,359.70 08/15/2026 812,681.25 765,100.00 47,581.25 40,458.03 12/31/2026 40,162.50 02/15/2027 63,900.00 68,100.00 -4,200.00 -3,542.26 08/15/2027 823,900.00 783,100.00 40,800.00 34,131.43 12/31/2027 36,600.00 02/15/2028 48,700.00 50,225.00 -1,525.00 -1,265.40 08/15/2028 833,700 00 795,225 00 38,475.00 31,666.38 12/31/2028 36,950.00 02/15/2029 33,000 00 31,600.00 1,400.00 1,142.91 08/15/2029 843,000.00 806,600.00 36,400.00 29,474.51 12/31/2029 37,800.00 02/15/2030 16,800.00 16,100 00 700.00 562.22 08/15/2030 856,800.00 821,100.00 35,700.00 28,440.61 12/31/2030 36,400.00 13,200,300.00 12,660,857.78 539,442.22 539,442.22 478,096.98 Savings Summary � PV of savings from cash flow 478,096.98 Plus:Refunding funds on hand 1,733.96 , ] � \ Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 68 SAVINGS Town of Southold Refunding of 2011 Bonds Savings Summary Net PV Savings 479,830.94 ♦ �l� � Jun 22,2016 4 38 pm Prepared by Mumstat Sernces,Inc Page 69 BOND PRICING Town of Southold Refitnd�ng of 2011 Bonds Maturiry Yield to Call Call Call Date Call Price Bond Component Date Amount Rate Yield Pnce Maturity Date Pnce for Arb Yield for Arb Yield Bond Component 08/IS/2017 570,000 3 000% 0 770% 102 I 18 08/15/2018 560,000 3 000% 0 860% 104 140 08/15/2019 575,000 3 000% 0.910% 106 080 08/IS/2020 580,000 4 000% 1 010% 111564 08/IS/2021 610,000 4 000% 1 120% I13 845 OS/IS/2022 635,000 5000% 1260% 121393 08/15/2023 660,000 5 000% 1 360% 124 078 08/15/2024 680,000 5.000% 1 460% 126 496 08/15/2025 720,000 5 000% 1560% 128 647 08/IS/2026 680,000 5 000% 1 670% 130 425 08l15/2027 715,000 5 000% 1 780% 129 257 C 2 O11% 08/15/2026 100 000 08/15/2026 100 000 08/15/2028 745,000 5 000% 1 860% 128 415 C 2 272% 08/15/2026 100 000 08/15/2026 100 000 08/IS/2029 775,000 4 000% 2 020% 117 774 C 2 396% OS/15/2026 100 000 08/15/2026 100 000 OS/15/2�30 SO5,000 4 000% 2 150% 116 499 C 2 584% 08/ISl2026 100 000 08/15/2026 100 000 9,310,000 Dated Date 09/01/2016 Delivery Date 09/O1l2016 Ftrst Coupon 02/15/2017 Par Amount 9,310,000 00 Premium 1,801,268 60 Produchon 11,111,268 60 119 347676% Underwnter's Discount -42,826 00 -0 460000% Purchase Pnce 11,068,442 60 118 887676% Accrued Interest Net Proceeds 11,068,442 60 ti .� � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 70 BOND DEBT SERVICE Town of Southold Refunding of 2011 Bonds Period Annual Ending � Principal Coupon Interest Debt Service Debt Service 02/15/2017 183,907.78 183,907.78 08/15/2017 570,000 3.000% 201,850.00 771,850.00 12/31/2017 955,757.78 02/15/2018 193,300.00 193,300.00 08/15/2018 560,000 3.000% 193,300.00 753,300.00 12/31/2018 946,600.00 02/IS/2019 184,900.00 184,900.00 08/15/2019 575,000 3.000% 184,900.00 759,900.00 12/31/2019 944,800.00 02/15/2020 176,275.00 176,275.00 08/15/2020 580,000 4.000% 176,275.00 756,275.00 12/31/2020 932,550.00 02/15/2021 164,675.00 164,675.00 08/15/2021 610,000 4.000% 164,675.00 774,675.00 12/31/2021 939,350.00 02/15/2022 152,475.00 152,475.00 08/15/2022 635,000 5.000% 152,475.00 787,475.00 12/31/2022 939,950.00 � 02/15/2023 136,600.00 136,600.00 08/15/2023 660,000 5.000% 136,600.00 796,600.00 12/31/2023 933,200.00 02/15/2024 120,100.00 120,100.00 08/15/2024 680,000 5.000% 120,100.00 800,100 00 12/31/2024 920,200:00 02/15/2025 103,100.00 103,100.00 08/15/2025 720,000 5.000% 103,100.00 823,100.00 12/31/2025 926,200.00 02/15/2026 85,100.00 85,100.00 08/15/2026 680,000 5.000% 85,100.00 765,100.00 12/31/2026 850,200.00 02/15/2027 68,100.00 68,100.00 08/15/2027 715,000 5.000% 68,100.00 783,100.00 12/31/2027 851,200 00 02/IS/2028 50,225.00 50,225.00� 08/15/2028 745,000 5.000% 50,225.00 795,225.00 12/31/2028 845,450.00 02/15/2029 31,600.00 31,600.00 08/15/2029 775,000 4 000% 31,600 00 806,600.00 12/31/2029 838,200.00 02/15/2030 16,100.00 16,100.00 08/15/2030 805,000 4 000% 16,100.00 821,100.00 12/31/2030 837,200.00 9,310,000 3,350,857.78 12,660,857.78 12,660,857.78 . .v � Pa e 71 Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. b PRIOR BOND DEBT SERVICE Town of Southold Refundmg of 2011 Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 02/15/2017 178,168.75 178,168.75 08/15/2017 640,000 3.000% 178,168.75 818,168.75 12/31/2017 996,337.50 02/15/2018 168,568.75 168,568.75 08lIS/2018 650,000 3.000% 168,568.75 818,568.75 12/31/2018 987,137.50 02/15/2019 158,818.75 158,818.75 08/15/2019 665,000 3.000% 158,818.75 823,818.75 12/31/2019 982,637.50 02/IS/2020 148,843.75 148,843.75 08/15/2020 675,000 3.000% 148,843.75 823,843 75 12/31/2020 972,687.50 02/15J2021 138,718.75 138,718.75 08/15/2021 700,000 3.000% 138,718.75 838,718.75 12/31/2021 ' 977,437.50 02/15/2022 128,218.75 128,218.75 08/15/2022 720,000 3.125% 128,218.75 848,218.75 12/31/2022 � 976,437.50 02/IS/2023 116,968.75 116,968.75 08/15/2023 740,000 3.250% 116,968.75 856,968.75 12/31/2023 973,937.50 02/15/2024 104,943.75 104,943.75 08/IS/2024 750,000 3.500°/a 104,943.75 854,943.75 12/31/2024 959,887.50 . 02/15/2025 91,818.75 91,818.75 08/15/2025 780,000 3.625% 91,818.75 871,818.75 12/31/2025 963,637.50 02/15/2026 77,681.25 77,681.25 08/15/2026 735,000 3.750% 77,681.25 812,681.25 12/31/2026 890,362.50 02/15/2027 63,900.00 63,900.00 08/15/2027 760,000 4.000% 63,900.00 823,900.00 12/31/2027 887,800.00 02/15/2028 48,700.00 48,700 00 08/15/2028 785,000 4.000% 48,700.00 833,700.00 12/31/2028 882,400.00 02/15/2029 33,000.00 33,000.00 08/IS/2029 810,000 4.000% 33,000.00 843,000.00 12/31/2029 876,000.00 02/15/2030 16,800.00 16,800.00 08/15/2030 840,000 4.000% 16,800.00 856,800.00 12/31/2030 , 873,600.00 10,250,000 2,950,300.00 13,200,300 00 13,200,300.00 .f' ' � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 72 SUMMARY OF BONDS REFUNDED Town of Southold Refundmg of 2011 Bonds Maturity Interest Par Call Call Bond Date Rate Amount Date Price Public Improvement Bonds 2011,2011BOND: 11 BONDS 08/15/2017 3.000% 640,000.00 08/15/2018 3.000% 650,000.00 08/15/2019 3.000% 665,000.00 08/15/2020 3.000% 675,000.00 08/15/2019 100.000 08/15/2021 3.000% 700,000.00 08/15/2019 100.000 08/15/2022 3.125% 720,000.00 O8/15/2019 100.000 08/15/2023 3.250% 740,000.00 08/15/2019 100.000 08/15/2024 3.500% 750,000.00 08/15/2019 100.000 08/15/2025 3.625% 780,000.00 08/15/2019 100.000 08/15/2026 3.750% 735,000.00 08/15/2019 100.000 08/15/2027 4.000% 760,000.00 08/15/2019 100.000 08/15/2028 4.000% 785,000.00 08/15/2019 100.000 08/15/2029 4.000% 810,000.00 08/15/2019 100.000 08/15/2030 4 000% 840,000.00 08/15/2019 100.000 10,250,000.00 , � ; Pa 73 Jun 22,2016 4.38 pm Prepazed by Munistat Services,Inc. � ESCROW DESCRIPTIONS Town of Southold Refunding of 2011 Bonds Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Sep 1,2016• SLGS Certificate 02/15/2017 02/15/2017 138,722 0.370% 0.370% SLGS Certificate 08/15/2017 08/15/2017 770,996 0.540% 0.540% SLGS Note 02/15/2018 02/15/2017 125,366 0.640% 0.640% SLGS Note 08/15/2018 02/15/2017 775,767 0.730% 0.730% SLGS Note 02/15/2019 02/15/2017 118,848 0.800% 0.800% SLGS Note 08/15(2019 02/15/2017 9,079,323 0.870% 0.870% 11,009,022 SLGS Summarv SLGS Rates File 22JiJN16 Total Certificates of Indebtedness 909,718.00 Total Notes 10,099,304.00 Total original SLGS 11,009,022.00 � i� } Pa e 74 Jun 22,2016 4.38 pm Prepared by Munistat Services,Inc. g ESCROW COST Town of Southold Refunding of 2011 Bonds Type of Maturity Par Total Security Date Amount Rate Cost SLGS 02/15/2017 138,722 0.370°/a 138,722.00 SLGS 08/15/2017 770,996 0.540% 770,996.00 SLGS 02/15/2018 125,366 0.640% 125,366.00 SLGS 08/15/2018 775,767 0.730% 775,767.00 SLGS 02/15/2019 118,848 0.800% 118,848.00 SLGS 08/15/2019 9,079,323 0.870% 9,079,323.00 11,009,022 11,009,022.00 Purchase Cost of Cash Total Date Securities Deposit Escrow Cost Yield 09/O1/2016 11,009,022 0.76 11,009,022.76 0.850796% 11,009,022 0.76 11,009,022.76 I i n � � Pa 75 Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. � ESCROW CASH FLOW � Town of Southold Refiznding of 2011 Bonds Present Value Net Escrow to 09/O1/2016 Date Principal Interest Receipts @ 0.8507960% 02/IS/2017 138,722.00 39,446.42 178,168.42 177,480.66 08/15/2017 770,996.00 47,172.64 818,168.64 811,558.03 02/15/2018 125,366.00 43,203.17 168,569.17 166,498.89 08/15/2018 775,767.00 42,802,00 818,569.00 805,090.90 02/15/2019 118,848.00 39,970 45 158,818.45 155,541.76 08/15/2019 9,079,323.00 39,495.06 9,118,818.06 8,892,851.76 11,009,022.00 252,089.74 11,261,111.74 11,009,022.00 Escrow Cost Summarv Purchase date 09/O1/2016 Purchase cost of securities 11,009,022.00 Target for yield calculation 11,009,022.00 e �" i Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 76 ESCROW SUFFICIENCY Town of Southold Refunding of 2011 Bonds Escrow Net Escrow Excess Excess Date Requirement Receipts Receipts Balance 09/O 1/2016 0.76 0.76 0.76 02/15/2017 178,168.75 178,168 42 -0.33 0.43 08/IS/2017 818,168.75 818,168.64 -0.11 0.32 02/15/2018 168,568.75 168,569.17 0.42 0.74 08/15/2018 818,568.75 818,569.00 0.25 0.99 02/15/2019 158,818.75 158,818.45 -0.30 0.69 08/15/2019 9,118,818.75 9,118,818.06 -0.69 11,261,112.50 11,261,112.50 0.00 « ,�, � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 77 ESCROW STATISTICS Town of Southold Refunding of 2011 Bonds Modified Yield to Yield to Perfect Va1ue of Total Duration Receipt Disbursement Escrow Negative Cost of Escrow Cost (years) Date Date Cost Arbitrage Dead Time Global Proceeds Escrow: 11,009,022.76 2.654 0.850796% 0.850796% 10,782,688 99 226,333.74 0.03 11,009,022.76 10,782,688.99 226,333.74 0.03 Delivery date 09/O1/2016 Arbitrage yield 1 635628% �e i�� � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 78 PROOF OF COMPOSITE ESCROW I'IELD Town of Southold Refunding of 2011 Bonds All restricted escrows funded by bond proceeds Present Value Security to 09/Ol/2016 Date Receipts @ 0.8507960445% 02/15/2017 178,168.42 177,480.66 08/15/2017 818,168.64 811,558.03 02/15/2018 168,569.17 166,498.89 08/15/2018 818,569.00 805,090.90 02/15/2019 158,818.45 155,541.76 08/15/2019 9,118,818 06 8,892,851.76 - 11,261,111.74 11,009,022.00 - Escrow Cost Summarv Purchase date 09/01/2016 Purchase cost of securities 11,009,022.00 Target for yield calculation 11,009,022.00 � ��. 3�� Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 79 PROOF OF ARBITRAGE YIELD Town of Southold , Refunding of 2011 Bonds Present Value to 09/O1/2016 Date Debt Service @ 1.6356277275% 02/15/2017 183,907.78 182,548.07 08/15/2Q17 771,850.00 759,928.59 02/15/2018 193,300.00 188,770.64 08/15/2018 753,300.00 729,681.42 02/15/2019 184,900.00 177,649 90 08/15/2019 759,900.00 724,181.15 02/15/2020 176,275.00 166,626.56 08/15/2020 756,275,00 709,081.18 02/15/2021 164,675.00 153,146.34 08/15/2021 774,675.00 714,597.03 02/15/2022 152,475.00 139,509.26 O8/15/2022 787,475.00 714,667.26 02/15/2023 136,600.00 122,964.72 08/15/2023 796,600.00 711,267.33 02/15/2024 120,100.00 106,364.89 08/15/2024 800,100.00 702,849.40 02/15/2025 103,100.00 89,833.72 . 08/15/2025 823,100.00 711,370.84 02/15/2026 85,100.00 72,951.75 08/15/2026 3,805,100.00 3,235,452.14 12,328,807.78 11,113,442.19 Proceeds Summarv Delivery date , 09/O1/2016 Par Value 9,310,000.00 Premium(Discount) 1,801,268.60 Target for yield calculation 11,111,268.60 � lt' � Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 80 , PROOF OF ARBITRAGE I'�LD Town of Southold Refunding of 2011 Bonds Assumed Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Call to 09/O1/2016 Component Date Rate Yield Date Price r�i 1.6356277275% BOND 08/15/2027 5.000% 1.780% 08/15/2026 100.000 10,992.30 BOND 08/15/2028 5.000% 1.860% 08/15/2026 100.000 17,726.42 BOND 08/15/2029 4 000% 2.020% 08/15/2026 100.000 29,972.19 BOND 08/15/2030 4.000% 2.150% 08/15/2026 100.000 41,396.16 Reiected Call/Computation Dates for Premium Bonds Net Present Value(NPV) Bond Maturity Call Call to 09/O1/2016 Increase Component Date Rate Yield Date Price @ 1.6356277275% to NPV BOND 08/15/2027 5.000% 1.780% 31,198.13 20,205.83 BOND 08/15/2028 5.000% 1.860% 59,493.49 41,767.07 BOND 08/15/2029 4.000% 2.020% 75,404.97 45,432.78 BOND 08/15/2030 4.000% 2.150% 103,812.53 62,416.37 � �� � Jun 22,2016 4•38 pm Prepared by Munistat Services,Inc Page 81 BOND SUMMARY STATISTICS Town of Southold Refunding of 2011 Bonds ' Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Last Maturity 08/15/2030 Arbitrage Yield 1.635628% True Interest Cost(TIC) 1.916009% Net Interest Cost(1VIC) 2 161516% All-In TIC 1.992611% Average Coupon 4.548394% Average Life(years) 7.913 Duration of Issue(years) 6.894 Par Amount 9,310,000.00 Bond Proceeds 11,111,268.60 Total Interest 3,350,857 78 Net Interest 1,592,415.18 Total Debt Service 12,660,857.78 Maximum Annual Debt Service 955,757.78 Average Annual Debt Service 907,227.07 Underwriter's Fees(per$1000) Average Takedown OtherFee 4.600000 Total Underwriter's Discount 4.600000 Bid Price 118.887676 Par Average Average Bond Component - Value Price Coupon Life Bond Component 9,310,000.00 119.348 4.548% 7.913 9,310,000.00 7.913 All-In Arbitrage TIC TIC Yield Par Value 9,310,000.00 9,310,000.00 9,310,000.00 +Accrued Interest +Premium(Discount) 1,801,268.60 1,801,268.60 1,801,268.60 -Underwriter's Discount -42,826.00 -42,826.00 -Cost of Issuance Expense -57,685.88 -Other Amounts Target Value 11,068,442.60 11,010,756.72 11,111,268.60 Target Date 09/O1/2016 09/O1/2016 09/O1/2016 Yield 1.916009% 1.992611% 1.635628% � �� �� Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 82 FORM 8038 STATISTICS Town of Southold Refunding of 2011 Bonds Dated Date 09/O1/2016 Delivery Date 09/O1/2016 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Bond Component: 08/IS/2017 570,000.00 3.000% 102.118 582,072.60 570,000.00 08/15/2018 560,000.00 3.000% 104.140 583,184.00 560,000.00 O8/15/2019 575,000.00 3.000% 106.080 609,960.00 575,000.00 08/15/2020 580,000.00 4.000% 111.564 647,071.20 580,000.00 08/15/2021 610,000.00 4.000% 113.845 694,454.50 610,000.00 08/15/2022 635,000.00 5.000% 121.393 770,845.55 635,000 00 08/15/2023 660,000.00 5.000% 124.078 818,914.80 660,000.00 08/15/2024 680,000.00 5.000% 126.496 860,172 80 680,000.00 08/15/2025 720,000.00 5.000% 128.647 926,258.40 720,000.00 08/15/2026 680,000.00 5.000% 130.425 886,890.00 680,000.00 08/IS/2027 715,000 00 5.000% 129.257 924,187.55 715,000.00 08/15/2028 745,000.00 5.000% 128.415 956,691.75 745,000.00 08/15/2029 775,000.00 4.000% 117.774 912,748.50 775,000.00 08/15/2030 805,000.00 4.000% 116.499 937,816.95 805,000.00 9,310,000.00 11,111,268.60 9,310,000.00 Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 08/15/2030 4.000% 937,816.95 805,000.00 Entire Issue 11,111,268 60 9,310,000.00 8.1206 1.6356% Proceeds used for accrued interest 0.00 Proceeds used for bond issuance wsts(including underwriters'discount) 100,511.88 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues 0.00 Proceeds used to advance refund prior issues 11,009,022.76 Remaining weighted average maturity of the bonds to be currently refunded 0.0000 Remaining weighted average maturity of the bonds to be advance refunded 7.6952 't;�` � ��" Jun 22,2016 4:38 pm Prepared by Munistat Services,Inc. Page 83 FORM 8038 STATISTICS Town of Southold Refunding of 2011 Bonds Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Public Improvement Bonds 2011: 11 BONDS 08/15/2017 640,000.00 3.000% 106.631 682,438.40 11 BONDS 08/15/2018 650,000.00 3.000% 104.912 681,928.00 11 BONDS 08/15/2019 665,000.00 3.000% 103.655 689,305.75 11 BONDS 08/15/2020 675,000.00 3.000% 101.442 684,733.50 11 BONDS 08/15/2021 700,000.00 3.000% 100.000 700,000.00 11 BONDS 08/15/2022 720,000.00 3.125% 99.300 714,960.00 11 BONDS 08/15/2023 740,000.00 3.250% 99.007 732,651.80 11 BONDS 08/15/2024 750,000.00 3.500% 100.000 750,000.0'0 I1 BONDS 08/15/2025 780;000.00 3.625% 99.722 777,831.60 11 BONDS 08/15/2026 735,000.00 3.750% 99.425 730,773.75 I1 BONDS 08/15/2027 760,000.00 4.000% 100.687 765,221.20 11 BONDS 08/15/2028 785,000.00 4.000% 100.000 785,000.00 11 BONDS 08/15/2029 810,000.00 4.000% 99.104 802,742.40 11 BONDS 08/15/2030 840,000.00 4.000% 98.029 823,443.60 10,250,000.00 10,321,030.00 Remaining Last Weighted Call Issue Average Date Date Maturity Public Improvement Bonds 2011 08/15/2019 06/29/2011 7.6952 All Refunded Issues 08/15/2019 7.6952