Summary:
The Resolution supplements City Ordinance No. 25329 (the “Covenant Ordinance”) and authorizes the issuance of Capital Improvement Refunding Special Revenue Bonds, Series 2016B (the “Series 2016B Bonds”), and Capital Improvement Special Revenue Bonds, Series 2016C (the “Series 2016C Bonds”, and, together with the Series 2016B Bonds, the “Series 2016 Bonds”), in an aggregate principal amount not to exceed $100,000,000.
Proceeds of the Series 2016B Bonds will be used to refund a portion of the City’s outstanding Capital Improvement Special Revenue Bonds, Series 2007B (the “Series 2007B Bonds”), a portion of the City’s outstanding Capital Improvement Special Revenue Bonds, Series 2009A (the “Series 2009A Bonds”), and a portion of the City’s outstanding Capital Improvement Refunding Special Revenue Bonds, Series 2010C (the “Series 2010C Bonds”) in order to achieve debt service savings. The Series 2007B Bonds originally financed various public safety capital projects that were part of the Mayor’s Public Safety Initiative. The Series 2009A Bonds originally financed a portion of the costs of constructing the Geico Garage at the Amway Center. The Series 2010C Bonds were issued to refinance a loan from the Sunshine State Governmental Financing Commission.
Proceeds of the Series 2016C Bonds will finance a portion of the costs of acquisition, construction, equipping and installation of municipal capital improvements, including a new public safety computer-aided dispatch (CAD) system and other public safety capital improvements.
The Series 2016 Bonds will be issued with fixed interest rates. The Resolution provides for the following parameters:
Series 2016B Parameters:
Maximum Bond Issue Size: $72,000,000
Term: Final maturity not later than the final maturity of the latest maturing refunded bonds
Minimum Net Present Value Savings: 3.00% of the principal amount of the refunded 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 2016C Parameters:
Maximum Bond Issue Size: $28,000,000
Term: Final maturity not later than October 1, 2046.
Maximum True Interest Cost: 4% (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.
Due to the characteristics of the Series 2016 Bonds, prevailing and anticipated market conditions, the need for flexibility in timing the sale and issuance of the Series 2016 Bonds and the need to allow for an expeditious sale of the Series 2016 Bonds, staff recommends that the method of sale be through a negotiated sale to Stifel, Nicolaus & Company, Incorporated, Blaylock Beal Van, LLC, and Ramirez & Co., Inc. (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 one or more 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 2016 Bonds at their meeting on March 11, 2016. |