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9/24/2014 Fitch Ratings I Press Release is repaid within 10 years. Capital needs are manageable and largely related to transportation and utility system improvements financed from gas and sales tax revenues, impact fees, and user fees. No new debt issuance is anticipated over the next five years. The county participates in the Florida Retirement System (FRS), a cost-sharing multiple -employer plan. FRS is relativelywell-funded with a funding ratio estimated at 79% as of June 30, 2013 using Fitch's more conservative 7% discount rate. The county's Iiabilitywith respect to employee pensions and OPEB approximated $9.6 million in fiscal 2013 (government wide) or 5.9% of governmental spending. The county provides an explicit subsidyfor OPEB exceeding the requirement of state law for employees hired on or after Feb. 1, 2006, and in 2008 established a trust account with a reported fair value of $11.6 million in fiscal 2013. The county essentially funds the full actuarial required contribution to OPEB. STRONG COVERAGE ON SPRING TRAINING BONDS Fiscal 2013 pledged revenues totaled $7.7 million and included $6.7 million from the pledged portion of the county's local government half -cent sales tax, $436,756 in TDT revenue, and $500,004 from the state's allocation. Coverage of MADS ($1.23 million) was a strong 6.2x. The half -cent sales tax and TDT revenue streams continue to perform relatively well. Annual sales tax and TDT receipts improved 5.6% and 8.5%, respectively, in fiscal 2013 from the prior year. Through the first nine months of fiscal 2014 collections are up 4.8% for the half -cent sales tax and 9.6% for the TDT. This revenue could be reduced by almost 90% from the projected fiscal 2013 receipts before coverage would be less than 1.0x(this analysis assumes collection of the $500,004 state payment). Leveraging risk is considered low despite the strong coverage, as surplus revenue from the half -cent sales tax is used to fund general operations of the county. The county has stated it has no plans to issue additional debt secured by either of these special taxes. The state payment represents a fixed sum payable to the countypursuant to Florida Statute 288.1162 and the county's certification by the state as a retained spring training franchise. Following the release of the half -cent sales tax and TDT pledge bondholders will be secured only by the state payments; MADS will decline to $499,750 resulting in 1.0x coverage. NARROW LTGO COVERAGE In fiscal 2015 the countywill levy 0.3694 mills of the ma'dmum pledged 0.5 mills to pay debt service on its limited GO bonds. The maximum levy of 0.5 mills would generate approximately 1.38x coverage of MADS based on fiscal 2015 taxable assessed value (TAV) of $13.4 billion and a 95% collection rate (actual current collections continue to exceed 96%). Fitch calculates current TAV could decline by31% before the maximum pledged millage rate would fail to cover MADS by at least 1.0x The county's TAV increased for the second consecutive year in fiscal 2015, increasing by4.5% following a 1.4% increase in 2014, possibly signaling stabilization. Although TAV has begun to exhibit signs of recovery, the county's fiscal 2015 TAV remains 27.6% below the peak value of $18.6 billion in fiscal 2008. Contact: PrimaryAnalyst Andrew Hoffman Analyst +1-212-908-0527 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Secondary Analyst Michael Rinaldi https://www.fitchrating s.cornicreditdesWpress_releases/detaiI.ctrn?print=1&pr_id=881294 3/4 15