Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Administration
Information
Requested Action
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MOTION TO ADOPT Resolution of the Board of County Commissioners of Broward County, Florida, authorizing the issuance of the County's Water and Sewer Utility Revenue Bonds, Series 2022A, to be issued in an aggregate principal amount not exceeding $200,000,000 to be applied, together with other legally available funds, if any, for the purposes of (1) paying all or a portion of the costs of additional improvements to the County's Water and Sewer Utility, (2) providing for funding of the Reserve Account Requirement, and (3) providing for the costs of issuance of the Series 2022A 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 2022A Bonds; authorizing the execution and directing the authentication and delivery of the Series 2022A Bonds; providing for a book-entry system; finding the necessity for a negotiated sale of the Series 2022A Bonds; approving the form and authorizing the execution and delivery of a purchase contract providing for the sale of the Series 2022A Bonds to the underwriters named therein and delegating to the County Administrator the authority to consummate such sale and to award the Series 2022A Bonds pursuant to the Purchase Contract; approving the form and authorizing the distribution and use of a Preliminary Official Statement and authorizing the execution; approving the form of and authorizing the execution and delivery of a Third Amendment and Supplement to Construction Account and Reserve Account Trust Indenture and appointing Regions Bank as Trustee to act thereunder; authorizing the distribution and use of a final Official Statement relating to the Series 2022A Bonds; approving the form and authorizing the execution and delivery of a Disclosure Dissemination Agent Agreement; authorizing a Reserve Account Insurance Policy for deposit to the reserve account; authorizing proper officials to do all things deemed necessary in connection with the issuance, sale, execution and delivery of the Series 2022A Bonds; authorizing all necessary administrative and budgetary actions related to the Series 2022A Bonds; providing for conflicts, severability and an effective date.
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Why Action is Necessary
The Board must authorize the issuance of the Series 2022A Bonds pursuant to the provisions of its Water and Sewer Utility Bond Resolution.
What Action Accomplishes
Authorizes the issuance of the Series 2022A Bonds for purposes of Florida law.
Is this Action Goal Related
No
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 MOTION.
On December 7, 2021 (Item No. 36), the Board approved an underwriting team for this bond financing, which includes Siebert, Cisneros, Shank & Co., L.L.C., as the senior managing underwriter (bookrunner), with Citigroup Global Markets Inc. and Raymond James & Associates d/b/a Raymond James, as co-managing underwriters, for the upcoming Water and Sewer Utility new money bonds. The financial advisor to this transaction is Public Resources Advisory Group, Inc.
The motion adopts a resolution that authorizes the issuance of the Water and Sewer Utility Revenue Bonds, Series 2022A (Series 2022A Bonds) for the principal purpose of financing the acquisition and construction of certain water and sewer utility capital improvements (the “2022A Project”). To accomplish the issuance of the Series 2022A Bonds, the resolution also authorizes the execution and delivery of various documents related to the issuance of the Series 2022A Bonds, the forms of which are attached as Exhibits A - G of the Series Resolution (Exhibit 1).
As detailed in the resolution, the Series 2022A Bonds are being issued for the purposes of providing funds, together with other legally available funds, if any, to: (i) pay all or a portion of the costs of the 2022A Project for the County's Water and Sewer Utility; (ii) fund the increase in the Reserve Account Requirement relating to the issuance of the Series 2022A Bonds; and (iii) pay the costs of issuance of the Series 2022A Bonds.
Source of Additional Information
George Tablack, Chief Financial Officer, (954) 357-7130
Fiscal Impact
Fiscal Impact/Cost Summary
The actual cost of debt service will be determined at the time of pricing, but average annual debt service for these bonds is estimated to be approximately $9.9 million payable solely from revenue generated by the County's Water and Sewer Utility.