The Resolution supplements City Ordinance No. 25329 (the “Covenant Ordinance”) and authorizes the issuance of Capital Improvement Special Revenue Bonds, Series 2014B (the “Series 2014B Bonds”), Capital Improvement Refunding Special Revenue Bonds, Series 2014C (the “Series 2014C Bonds”), and Capital Improvement Refunding Special Revenue Bonds, Series 2014D (the “Series 2014D Bonds”, and, together with the Series 2014B Bonds and the Series 2014C Bonds, the “Series 2014 Bonds”), in an aggregate principal amount not to exceed $106,000,000. 

Proceeds of the Series 2014B Bonds will finance a portion of the costs of acquisition, construction, equipping and installation of municipal capital improvements, including i) a new Orlando Police Department headquarters facility, ii) relocation of a radio communications tower located at the existing Orlando Police Department headquarters facility, (iii) a new Fire Station #2, iv) various systems and lighting upgrades in City-owned buildings to achieve energy efficiencies and to realize utility cost savings, and v) related facilities and improvements (collectively, the “2014 Project”).

Proceeds of the Series 2014C Bonds and the Series 2014D Bonds will be used to  currently refund the City’s existing Capital Improvement Special Revenue Bonds, Series 2005A (the “Series 2005A Bonds”)  and to advance refund the City’s existing Capital Improvement Special Revenue Bonds, Series 2006A (the “Series 2006A Bonds”) in order to achieve debt service savings.  The Series 2005A Bonds originally financed various capital projects in the City’s FY 2003/2004 capital budget.  The Series 2006A Bonds originally financed the City’s Jefferson Street Parking Garage.

The Series 2014 Bonds will be issued with fixed interest rates. 

The Resolution provides for the following parameters:

Series 2014B Parameters:

Maximum Bond Issue Size: $77,000,000

Term: Final maturity not later than October 1, 2047.

Maximum True Interest Cost: 6.5% (including cost of issuance and underwriter’s discount).

Minimum Purchase Price: 98% of par, subject to original issue discount or premium.

Optional Redemption: To the extent subject to optional redemption, first optional redemption date not earlier than five (5) years from date of issuance.

Series 2014C Parameters:

Maximum Bond Issue Size: $13,000,000

Term: Final maturity not later than the final maturity of the Series 2005A Bonds

Minimum Net Present Value Savings: 3.00% of the principal amount of the 2005A Bonds

Minimum Purchase Price: 98% of par, subject to original issue discount or premium.

Optional Redemption: To the extent subject to optional redemption, first optional redemption date not earlier than five (5) years from date of issuance.

Series 2014D Parameters:

Maximum Bond Issue Size: $16,000,000

Term: Final maturity not later than the final maturity of the Series 2006A Bonds

Minimum Net Present Value Savings: 3.00% of the principal amount of the 2006A Bonds

Minimum Purchase Price: 98% of par, subject to original issue discount or premium.

Optional Redemption: To the extent subject to optional redemption, first optional redemption date not earlier than five (5) years from date of issuance.

Due to the characteristics of the Series 2014 Bonds, prevailing and anticipated market conditions, the need for flexibility in timing the sale and issuance of the Series 2014 Bonds and the need to allow for an expeditious sale of the Series 2014 Bonds, staff recommends that the method of sale be through a negotiated sale to Jefferies LLC, Siebert Brandford Shank & Co. LLC, Wells Fargo Securities LLC, Samuel A. Ramirez & Co., Inc., and Blaylock Beal Van, LLC (the “Underwriters”), upon the satisfaction of the conditions and terms set forth in the Resolution.

Along with the Resolution, the action will approve the form of and authorize the execution of a Bond Purchase Agreement, a Continuing Disclosure Commitment, Preliminary and Final Official Statements, and two separate Escrow Deposit Agreements, as well as authorize the Mayor to approve changes thereto and take other action necessary to complete the transaction.

The Finance Committee approved the issuance of the Series 2014 Bonds at their meetings on November 22, 2013 and May 30, 2014.  The original financing parameters for the Series 2014B Bonds approved by the Finance Committee included a final maturity of not later than 30 years from the date of issuance.  To provide additional flexibility to create the optimal debt service structure for the City, the attached Resolution includes a revised final maturity parameter for the Series 2014B Bonds of not later than October 1, 2047.  This amended final maturity exceeds the initial parameter approved by the Finance Committee by approximately 3 years.  The remaining parameters contained in the Resolution are consistent with the Finance Committee’s approvals.