|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - November 18, 2014|
Agenda Item #62
General Government CIP Bond Issue
Contact and/or Presenter Information
Jim Seuffert, Director Financial Management, ext. 3760
Authorize negotiations with underwriting team recommended in Paragraph 2 below to provide for a portion of the financing required for the FY 2015 CIP General Government Capital Projects.
The adopted General Government Capital Improvement Program for FY 2015 anticipates issuance of bonds to finance a portion of the projects. Based on current low interest rates and cash flow needs, staff believes that it is prudent to proceed with issuing bonds sooner rather than later. A portion of the proceeds from the bonds will also be used to reimburse the General Fund for monies advanced to capital projects in FY 14, including the Beach Renourishment project and the renovations to the second floor of the Historic Courthouse. A precise estimate of the amount of bonds to be issued is not yet available because we do not have final pricing on major projects to be financed such as the P-25 Radio System.
It is recommended that Ed Bulleit of MBS Capital, Financial Advisor for the Port and for the County, with support from County staff, along with our legal counsel, be authorized to negotiate with the proposed underwriting team to accomplish the issuance. The proposed underwriting team for this issue would be Wells Fargo/Harbor Financial (joint venture) as managing underwriter, and Citi. Underwriters have been chosen based on the efforts that they have made to date to provide creative suggestions relating to the special circumstances involved in this underwriting, and/or on the history of involvement on the part of their key personnel in previous successful county financings.
The schedule for issuance of the bonds has not yet been established due to incomplete information regarding the cost of some of the projects, but we want to have our financing team ready to go as soon as details are developed. At that point, one or more Bond Resolutions, along with project and financing details, will be presented to the County Commission for approval. All documents will be reviewed and approved by Bond Counsel and the County Attorney prior to issuance of debt.
Funds have been budgeted in the FY 15 Budget to enable payment of debt service on a recurring basis over the term of the bonds, which we currently estimate will be amortized over a period of not more than 15 years (however, a longer amortization period may be acceptable for a portion of the debt if the life cycle of some of the projects to be financed exceeds 15 years). The repayments for the reimbursement projects identified above can be covered by funds from the Tourist Development Tax for Beach Projects and from the rent expected to be received from the State for the Child Support offices occupying the second floor of the Historic Courthouse.
CIP Projects which could be financed from the debt include: P-25 Radio System, Replacement of Automated Jail Management System, Replacement of Automated Financial Management System, Replacement of County Phone Systems with VoIP, Tax Collector Office Expansion, and buildout of the Public Safety Building Data Center.
County Attorney Review
Not Reviewed (No apparent legal issues)
Explanation of Other
Instructions to Board Records
Cost and Funds Source Account Number and Name
Amount and Frequency of Recurring Costs