www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - March 8, 2016
March 8, 2016 - Regular Meeting
Agenda Item #35


Subject
General Government Debt Issuance

Briefings
None

Contact and/or Presenter Information
Jan Brewer, Director, Financial Management Department, Ext. 3726

Action Requested

Motion to approve acceptance of the proposal for a term loan by Bank of America, N.A., in an amount not to exceed $36,000,000, and to authorize the execution of the Summary of Terms and Conditions included in the agenda, per the recommendation of MBS Capital Markets, LLC., the County's Financial Advisor, indicating the Board's acceptance of proposal, subject to final negotiations of all terms and conditions. 



Enabling/Regulating Authority
Article VII, Florida Constitution, and Chapter 125, Florida Statutes

Background Discussion

The Capital Improvement Program for FY16-20 anticipates issuance of debt to finance a portion of the General Government projects. 

A work session with the Board was held on October 13, 2015, to identify the projects in need of debt issuance.  The recommendation by staff was to issue debt to provide funds for eight General Government projects adopted within the FY16-20 Capital Improvement Plan and one completed project for reimbursement of advanced funding, as indicated in Attachment A.

At the November 3, 2015, Board meeting, the Board approved the authorization of our Financial Advisor and staff to determine the most cost effective financing option for the transaction.  It was determined that due to the short amortization of the debt and other market factors, the most cost effective alternative was a direct placement to a bank. 

As shown in Attachment B, MBS Capital Markets, LLC, provided communications on February 22, 2016, that Bank of America, N.A. provided the lowest indicative True Interest Cost for the bonds, with the following parameters:

(i)   Par amount of the Series 2016 Bonds not to exceed $36,000,000;

(ii)  Payment of principal and interest shall be secured by a covenant to budget and appropriate from legally available non-ad valorem revenues.

(iii)  The indicative non-bank qualified true interest cost rate as of February 16, 2016, is 1.57%; the actual rate will be set two business days prior to closing utilizing a published index plus a defined credit spread;

(iv)  The final maturity of the Series 2016 Bonds is September 30, 2026;

(v)  Prepayments are permitted at any time with three business days prior notice.  All prepayments will be subject to a prepayment penalty as described in the proposal;

(vi)  Bank counsel fees not to exceed $5,500, and no other fees of the bank.

Upon approval, County staff, Bond Counsel ,and the Financial Advisor will negotiate final documents.  Once final documents are received, they will be presented to the Board for approval.



County Attorney Review
Other (Requires explanation in field below)

Explanation of Other
Loan documents will be prepared by Bond Counsel and reviewed by William Clague, Assistant County Attorney.

Reviewing Attorney
Clague

Instructions to Board Records

Copies to budget@mymanatee.org, dunderwood@mymanatee.org, William Clague, County Attorney's Office.



Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  Gen Govt Debt Attach A.pdf
Attachment:  Gen Govt Debt Attach B.pdf