Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 22-R96, Authorizing the Defeasance of the City’s Outstanding Public Service Tax Refunding Revenue Bonds, Series 2016, Not to Exceed $17,000,000, in order to Reduce the Debt of the City.
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Submitted By: Stephen Okiye, Finance Director/City Treasurer, Finance Department
Strategic Plan Link: The City’s Mission to be financially responsible.
Executive Summary (General Business): In order to reduce the debt of the City, staff recommends the City of Port St. Lucie, Florida, utilize certain legally available monies for the defeasance and redemption of the outstanding City’s Public Service Tax Refunding Revenue Bonds, Series 2016. Currently, these bonds have an outstanding balance of $15,900,000. The proceeds of the Public Service Tax Refunding Revenue Bonds, Series 2016 were used to refinance the costs of various governmental buildings and facilities. The City has on hand certain proceeds that legally can be used to defease and redeem all of the outstanding Public Service Tax Refunding Revenue Bonds, Series 2016.
Presentation Information: Our Financial Advisor, Jay Glover, PFM, and Bond Attorney, Steve Miller, Esq., Nabors, Giblin & Nickerson, P.A., will be available to answer any questions.
Staff Recommendation: Move that the Council approve the Resolution authorizing the defeasance and redemption of the City’s outstanding Public Service Tax Refunding Revenue Bonds, Series 2016, and authorizing the execution of the Escrow Deposit Agreement, which is included as an Exhibit to the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Resolution authorizing the defeasance and redemption of the City’s outstanding Public Service Tax Refunding Revenue Bonds, Series 2016, and authorizing the execution of the Escrow Deposit Agreement, which is included as an Exhibit to the Resolution.
2. Move that the Council provide staff direction.
Background: The Series 2016 Bonds were used to (i) refund all of the City’s Refunding Certificates of Participation, City of Port St. Lucie, Florida Master Lease Project, Series 2008 and (ii) pay certain expenses related to the issuance and sale of the Series 2016 Bonds. The City of Port St. Lucie, Florida Public Service Tax Refunding Revenue Bonds, Series 2016 were issued October 18, 2016, in the aggregate principal amount of $30,875,000; $15,900,000 of which is currently outstanding.
Issues/Analysis: N/A
Financial Information: The City has on hand building impact fee proceeds that legally can used to defease and redeem all of the outstanding City of Port St. Lucie, Florida Public Service Tax Refunding Revenue Bonds, Series 2016.
Special Consideration: N/A
Location of Project: N/A
Attachments:
1. Resolution
2. Exhibit A to the Resolution - Escrow Deposit Agreement
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 8819
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.