Broward County Commission Regular Meeting
Director's Name: Stephen Farmer (Acting Director)
Department: Finance and Administrative Services Division: Administration
Information
Requested Action
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A. MOTION TO ADOPT Resolution, the title of which is as follows:
RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA, AUTHORIZING THE ISSUANCE OF WATER AND SEWER UTILITY REVENUE REFUNDING BONDS, SERIES 2025, TO BE ISSUED IN AN AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING $180,000,000 TO BE APPLIED, TOGETHER WITH OTHER LEGALLY AVAILABLE FUNDS, IF ANY, FOR THE PURPOSES OF (1) REFUNDING ALL OR A PORTION OF THE COUNTY'S WATER AND SEWER UTILITY REVENUE REFUNDING BONDS, SERIES 2015A AND THE COUNTY'S WATER AND SEWER UTILITY REVENUE REFUNDING, SERIES 2015B AND (2) PROVIDING FOR THE COSTS OF ISSUANCE OF THE SERIES 2025 BONDS; DELEGATING TO THE COUNTY ADMINISTRATOR, WITHIN THE PARAMETERS SET FORTH HEREIN, THE AUTHORITY TO PROVIDE CERTAIN TERMS, PROVISIONS AND PROVIDERS OF SERVICES FOR THE SERIES 2025 BONDS; AUTHORIZING THE EXECUTION AND DIRECTING THE AUTHENTICATION AND DELIVERY OF THE SERIES 2025 BONDS; PROVIDING FOR A BOOK-ENTRY SYSTEM; AUTHORIZING THE COMPETITIVE SALE OF THE SERIES 2025 BONDS; APPROVING THE FORM OF THE NOTICE OF SALE OF THE SERIES 2025 BONDS AND DELEGATING TO THE COUNTY ADMINISTRATOR THE AUTHORITY TO CONSUMMATE SUCH SALE AND TO AWARD THE SERIES 2025 BONDS PURSUANT TO SUCH NOTICE OF SALE; APPROVING THE FORM AND AUTHORIZING THE DISTRIBUTION AND USE OF A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION, DISTRIBUTION AND USE OF A FINAL OFFICIAL STATEMENT RELATING TO THE SERIES 2025 BONDS; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A DISCLOSURE DISSEMINATION AGENT AGREEMENT; AUTHORIZING THE CONTINGENT REDEMPTION OF THE REFUNDED SERIES 2015A BONDS AND SERIES 2015B BONDS; AUTHORIZING PROPER OFFICIALS TO DO ALL THINGS DEEMED NECESSARY IN CONNECTION WITH THE ISSUANCE, SALE, EXECUTION AND DELIVERY OF THE SERIES 2025 BONDS; PROVIDING FOR CONFLICTS, SEVERABILITY AND AN EFFECTIVE DATE.
B. MOTION TO ADOPT Resolution amending in certain aspects and restating in its entirety Resolution No. 88-4066 of the Board of County Commissioners of Broward County, Florida adopted on September 6, 1988, as previously amended and supplemented (the “Existing Resolution”), and subject to further approval by at least 51% of the Bondholders as required by the Existing Resolution.
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Why Action is Necessary
Formal approval by the Broward County Board of County Commissioners (“Board”) is necessary for the adoption of each Resolution.
What Action Accomplishes
Enables the adoption of each Resolution.
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Previous Action Taken
None
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Motion A adopts a proposed Resolution that authorizes the issuance of the County’s Water and Sewer Utility Revenue Refunding Bonds, Series 2025 (the “Series 2025 Bonds”), to be issued in an aggregate principal amount not exceeding $180,000,000. The proceeds of the Series 2025 Bonds will be used to (1) pay the costs of refunding all or a portion of the County’s outstanding Water and Sewer Utility Revenue Refunding Bonds, Series 2015A Bonds and the Water and Sewer Utility Revenue Refunding Bonds, Series 2015B; and (2) pay the costs of issuance of the Series 2025 Bonds. The Series 2025 Bonds are being issued under and pursuant to Resolution No. 88-4066, adopted by the Board on September 6, 1988, as amended and supplemented by Resolution No. 88-4913, adopted by the Board on November 1, 1988, and by Resolution No. 2003-89, adopted by the Board on February 18, 2003 (collectively, the “Existing Resolution”).
The Series 2025 Bonds are secured by a pledge of and lien on Net Revenues derived from the operation of the County's Water and Wastewater Utility System (the "Utility"), and, to the extent permitted by law and the Resolution, certain Impact Fees (collectively, the "Pledged Revenues").
Proceeds of the Series 2025 Bond will be utilized to current refund all or a portion of the outstanding Water and Sewer Utility Revenue Bonds, Series 2015A and Series 2015B (the “Refunded Bonds”) and pay costs associated with issuance of this Bond.
The Series 2025 Bonds will be sold by competitive bid. The recommended competitive sale method is based on the favorable size, structure, and strong credit ratings of the Utility (Exhibit 3). The underwriter or underwriting syndicate that submits the bid with the lowest TIC (True Interest Cost) is awarded the bonds. The entire process is handled through the industry standard Parity Electronic Competitive Bidding System. According to The Bond Buyer, last year, of the 8,641 public sales of long-term municipal bonds, approximately 40% used the competitive sale method.
The County expects to receive interest rate proposals from underwriters based on specified parameters as detailed in the resolution (Exhibit 1). If the parameters of the Resolution are not satisfied, the County will not issue the Series 2025 Bonds.
Motion B adopts a Resolution amending in certain respects and restating in its entirety Resolution 88-4066 adopted on September 6, 1988, as previously amended and supplemented (“Bond Resolution”). Based on the length of time since the Bond Resolution was adopted and last amended and supplemented, the County’s bond counsel and its financial advisor recommended that certain updates should be made to most effectively meet the County’s current and future Utility’s financing needs and comply with current best practices (Exhibit 2). Such amendments to the Bond Resolution require the consent of at least 51% of the Bondholders.
Source of Additional Information
Stephen Farmer, Deputy Chief Financial Officer, (954) 357-7130
Fiscal Impact
Fiscal Impact/Cost Summary
The actual cost of debt service will be determined once the lowest interest rate has been accepted. The winning bid is expected to provide a minimum of 5% net present value savings on the Refunded Bonds.