|REVISED April 12, 2016 - Regular Meeting|
Agenda Item #42
Transportation Revenue Improvement Notes, Series 2016
Contact and/or Presenter Information
Jan Brewer, Director, Financial Management Department, Extension 3726
Adoption of Note Resolution R-16-054 authorizing the issuance of the Transportation Revenue Improvement Notes, Series 2016.
The Capital Improvement Program for FY16-20 anticipates issuance of debt to finance a portion of the Transportation 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 seven Transportation Projects adopted within the FY16-20 Capital Improvement Plan and three ongoing projects for reimbursement of advanced funding, as indicated in Attachment A.
On November 3, 2015 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 to fund a portion of the project with draw-down line of credit with a maturity of two years, At maturity, long-term fixed rate bonds will be issued to take-out the loan, as well as, fund the remaining portion of the project. By using the line of credit, the County will take advantage of paying minimal interest during the design stages of the projects.
On February 26, 2016, a request for proposal was sent to ten banks with proposals due on March 10, 2016. Acting in its capacity as Financial Advisor, MBS recommended that the loan be negotiated with Bank of America, N.A., which provided the lowest indicative interest rate for the line of credit.
On March 22, 2016 the Board accepted the proposal for a line of credit loan by Bank of America, N.A. in an amount not to exceed $36,000,000 for Transportation Projects and to authorize the execution of the summary of Terms and Conditions included in the agenda.
The current recommendation by staff is approval of the attached resolution which provides the following:
1) Authorize the Issuance of Transportation Revenue Improvement Notes, Series 2016 in an amount not to exceed $36,000,000, which will be made in periodic draws and will have a final maturity date of March 23, 2018.
2) Authorize and approve the execution of the loan agreement with Bank of America, N.A., the lender, who was recommended by the County's Financial Advisor, MBS Funding Corporation, based on a request for proposals. The interest rate will be a variable rate utilizing the established index plus a defined credit spread adjusted daily. Interest to be paid to the Bank on a monthly basis.
Bond Counsel for Manatee County, Stephen D. Sanford of Greenberg Taurig, P.A., has prepared for review Note Resolution R-16-054 and certain other documents for approval; he has also approved the underwriting documents prepared by counsel to the underwriters to finalize the authorization for financing the bonds. The Resolution also authorizes subsequent execution of closing documents and provides for certain other details related to periodic draws, maturities and future loan prepayments by an issuance of bonds. Additionally, parameters are established in the Resolution that would rescind the authorization to borrow funds if market changes affect the feasibility of the transaction.
Updated versions of these documents may be provided to the Commission prior to the meeting due to extensive review from numerous parties, but the basic terms and conditions will not change.
County Attorney Review
Other (Requires explanation in field below)
Explanation of Other
Loan documents were prepared by Bond Counsel and reviewed by William Clague.
Instructions to Board Records
Copies off approval to:
Jan Brewer, Director, Financial Management Department (email@example.com), William Clague, County Attorney's Office (firstname.lastname@example.org), Debbie Underwood, Financial Management Department (email@example.com) and firstname.lastname@example.org.
Cost and Funds Source Account Number and Name
Amount and Frequency of Recurring Costs
Attachment: Transportation LOC Draw Flow.pdf
Attachment: Attachment A- Transportation line of Credit.pdf
Attachment: MBS Capital Markets FA Letters to BOC.pdf
Attachment: R-16-054 _Note Resolution - Transportation Revenue Improvement Notes, Series 2016.pdf