Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - December 12, 2017
REVISED December 12, 2017 - Regular Meeting
Agenda Item #47

Public Utilities System Cross-over Revenue Refunding Bonds Series 2017 - Debt Issuance


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

Action Requested

Adoption of Resolution No. R-17-147 authorizing the issuance of the Public Utilities System Revenue Refunding Bonds, Series 2017, in a not to exceed principal amount of $75,000,000 (the “Series 2017 Bonds”).

Enabling/Regulating Authority

Article VII, Florida Constitution, and Chapter 125, Florida Statutes

Background Discussion

The purpose for the issuance of the Series 2017 Bonds is to advance refund, on a cross-over basis, the County’s Federally Taxable – Direct Payment – Public Utilities Revenue Improvement Build America Bonds, Series 2010A maturing after October 1, 2020 and all of the County’s Federally Taxable – Direct Payment – Public Utilities Revenue Improvement Recovery Zone Economic Development Bonds, Series 2010B (referred to in Resolution as the “Refunded Bonds”).  This refunding program places proceeds from the Series 2017 Bonds in escrow which pays the interest on the Series 2017 Bonds until the call date on the Refunded Bonds, at which time the principal of the Refunded Bonds would be paid from such escrow.  Such redemption would occur on October 1, 2020 or an earlier date as determined by the County. Since the 2010A Series was issued as taxable Build America Bonds (“BABS”), and the Series 2010B was issued as taxable Recovery Zone Economic Development Bonds (“RZEDBs”), the County will continue to receive a federal subsidy on the Series 2010A and 2010B Bonds until the redemption date.  The Series 2017 Bonds will be tax-exempt without any federal subsidy.

On November 28, 2017, the Board authorized Public Resources Advisory Group (the County’s Financial Advisor) and supporting County staff and Bond Counsel to determine the most cost effective financing option and negotiate with banking institutions.  As part of the Financial Advisor’s recommendations, the debt issuance is to be completed as soon as possible to take advantage of the current market and the deadlines imposed by the proposed bills of Congress which would eliminate this type of refunding after December 31, 2017.  

On December 12, 2017, the Resolution is being presented to the Board to issue the abovementioned Series 2017 Bonds with the collaboration of:  the County’s Financial Advisor; Stephen D. Sanford, Bond Counsel, Greenberg Traurig, P.A., and Wells Fargo Securities, Senior Managing Underwriter.

To finalize the authorization for the financing for the Series 2017 Bonds, Bond Counsel for Manatee County, Stephen D. Sanford of Greenberg Traurig, P.A., has prepared for review the Bond Resolution (No. R-17-147) and certain other documents that you are approving in substantially final form, along with approval of the underwriting documents prepared by counsel to the underwriters.  Bond Resolution No. 17-147 also authorizes subsequent execution of closing bond documents and provides for certain other details related to issuance of the Series 2017 Bonds.  In addition, parameters are established in such Resolution that must be adhered to in order for the County to proceed.

Copies of ratings letters from Fitch Ratings and Moody’s Investors Service, reporting bond ratings of AA+ and Aa2, respectively, are expected to be provided.

The refunding of the Refunded Bonds, on a cross-over basis, is expected to generate 4.74% present value savings as a percentage of outstanding par over the life of the bonds (partial subsidy - equivalent to $2,861,831); however, if the savings are less than 3% the County will not refund the Refunded Bonds.  Prior to the applicable redemption date, the aforementioned escrow will pay the interest due and owing on the Series 2017 Bonds.

Your Financial Advisor, Clerk of Courts and Comptroller, County Administrator, and Financial Management Director have all recommended that the bonds be issued as soon as practicable to take advantage of currently favorable interest rates available in the market and the principal changes in federal tax law.  A letter of recommendation from the Financial Advisor to sell bonds on a negotiated basis is attached.  The final rates will be established based on market conditions and both the rates and the minimum level of savings is set forth in the Resolution. 

As always, “not to exceed” figures shown on the Bond Resolution are higher than the actual amount of bonds to be issued to allow for flexibility in structuring the bonds

As is often the case with complex items such as the issuance of bonds, comments regarding these documents are often received from counsel and others after the publication of the agenda, and updated versions of the documents may be provided to the Commission prior to the December 12th meeting.

The following documents are included in this agenda item as attachments:

  • Resolution R-17-147
  • Exhibit A to R-17-147, Draft Purchase Contract
  • Exhibit B to R-17-147, Draft Preliminary Official Statement (POS)
  • Exhibit C to R-17-147, Draft Escrow Agreement
  • Exhibit D to R-17-147, FA's Letter of Recommendation

Other documents contemplated in Resolution No. R-17-147 or the POS will be provided at or before closing on the sale of the Series 2017 Bonds.

County Attorney Review
Other (Requires explanation in field below)

Explanation of Other

Bond documents prepared by Bond Counsel and reviewed by William Clague, Assistant County Attorney

Reviewing Attorney

Instructions to Board Records
Copies to budget@mymanatee.org, sheila.ballesteros@mymanatee.org, and william.claque@mymanatee.org


One certified copy of Resolution No. R-17-147 to County Attorney for delivery to Stephen D. Sanford.

Copies of approved agenda memorandum to William Clague, County Attorney's office, and Sheila Ballesteros, Financial Management

Cost and Funds Source Account Number and Name

Amount and Frequency of Recurring Costs

Attachment:  Exhibit A to Bond Resolution - Purchase Contract .pdf
Attachment:  Exhibit B to Bond Resolution- Preliminary Official Statement.pdf
Attachment:  Exhibit C to Bond Resolution - Escrow Deposit Agreement.pdf
Attachment:  Exhibit D to Bond Resolution - FA's Letter of Recommendation .pdf
Attachment:  Bond Resolution R-17-147.pdf