www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - January 7, 2014
January 7, 2014 - Regular Meeting
Agenda Item #27


Subject
Manatee County General Obligation Refunding Bonds, Series 2014

Briefings
Briefing Provided Upon Request

Contact and/or Presenter Information
Jim Seuffert, Director, Financial Management Department, x 3730

Action Requested

Authorize execution of Resolution R-14-07, providing for issuance of Series 2014 General Obligation Refunding Bonds in an amount not to exceed $ 7,500,000.



Enabling/Regulating Authority
N/A   

Background Discussion
  • In the County Debt Report presented on August 20, 2013, the County’s outstanding General Obligation Bonds were identified as being eligible for refunding as of October 1, 2013.
  • On September 24, 2013, the commission authorized staff to proceed with the refinancing of the bonds.
  • The General Obligation Bonds were authorized by voters in two separate referenda nearly 30 years ago in order to fund acquisition of properties in the Lake Manatee Watershed that were owned by phosphate mining companies and intended for phosphate mining.
  • In order to accomplish the refunding, staff and our financial advisor have sought proposals on interest rates and other terms for loans from banks, with the intent of recommending award of the loan with the bank offering the best combination of rates and other terms.
  • The proposal offered by Regions Bank is recommended for approval due to the rate offered, which was 1.09% as compared to an average rate of 4.11% on the current bonds, as well as the optional terms offered to allow the county to fully amortize the loan in FY 2015, two years ahead of schedule.  This optional redemption provision, which offers the opportunity for additional savings, could be selected by the commission during the budget process for the FY 2015 Budget.  Since these are General Obligation Bonds, approved by voters and backed by the full faith and credit of the county, the millage rate could be adjusted during the budget process to allow early payment without the change being defined as a tax increase.
  • In order to proceed with the refunding, net present value savings of 3% on the transaction would have to be realized. For this transaction, the savings is expected to amount to approximately 4.5%.
  • The resolution provides for the following:

1. Authorize the refunding of the County’s outstanding General Obligation Refunding Bonds, Series 2003 (outstanding in the amount of $7,120,000).

2. Authorize the issuance of Manatee County, Florida General Obligation Refunding Bonds, Series 2014 (the 2014 Bonds – to accomplish such refunding in a not to exceed amount of $7,500,000.) Actual issue size expected to be $7,275,000.

3. Based on a request for proposals, award the sale of the 2014 Bonds to Regions Capital Advantage, Inc. (the Bond Purchaser – who has been recommended by MBS Capital, the County’s Financial Advisor, as providing the best overall proposal.) The interest rate will be fixed at 1.09% and the net present value savings will be approximately 4.50%.

4. Approve the form of an escrow deposit agreement with Regions Bank, as escrow agent, to defease the 2003 Bonds which will be redeemed within 40 days from date of issuance of the 2014 Bonds.

5. Approve the form of Bond Purchase Agreement with the Bond Purchaser.

  • Due to extensive review from numerous parties, updated versions of these documents may be provided to the Commission prior to the meeting, but the basic terms and conditions will not change.


County Attorney Review
Other (Requires explanation in field below)

Explanation of Other

Documents prepared by Bond Counsel and reviewed by Bill Clague.



Reviewing Attorney
Clague

Instructions to Board Records

Copy of approved agenda item to jim.seuffert@mymanatee.org, candice.cruz@mymanatee.org.



Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  Resolution No. R-14-07 Manatee General Obligation Refunding Bonds, 2014.pdf
Attachment:  Escrow Deposit Agreement - Manatee 2014 GO Refunding Bonds.pdf
Attachment:  Bond Purchase Agreement - Manatee - 2014 GO Refunding Bonds.pdf