Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 26-28, Public Hearing, an Ordinance Authorizing the Issuance of not to Exceed $75,000,000 in Aggregate Principal Amount of City of Port St. Lucie, Florida Special Obligation Refunding Revenue Bonds, Series 2026 to Refund a Portion of the City's Outstanding Special Assessment Refunding Bonds, Series 2016 (Southwest Annexation Special Assessment District No. 1) and a Portion of the City's Outstanding Taxable Special Obligation Refunding Revenue Bonds, Series 2017, in Order to Achieve Debt Service Savings and to Provide Funding for the Torino Regional Park Project; Providing for a Covenant to Budget and Appropriate Legally Available Non-Ad Valorem Revenues to Pay the Principal of, Redemption Premium, if Any, and Interest on the Bonds; Providing for Certain Rights of the Holders of Such Bonds; and Providing an Effective Date.
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Submitted By: Stephen Okiye, Finance Director, Finance Department.
Strategic Plan Link: The City’s Mission to utilize fiscal responsibility.
Executive Summary (General Business): Staff recommends the City of Port St. Lucie, Florida issue Special Obligation Refunding Revenue Bonds and Torino Regional Park, Series 2026, for the principal purpose of refunding a portion of the City’s outstanding Special Assessment Refunding Bonds, Series 2016 (Southwest Annexation Special Assessment District NO.1) and a portion of the Taxable Special Obligation Refunding Revenue Bonds, Series 2017 (City Center Special Assessment District) together (the “Refunded Bonds”) to achieve debt service savings for the City and to provide funding for the Torino Regional Park Project. The debt service savings is estimated to result in $2 million of net present value debt service savings (net of all issuance costs), which equates to annual savings of approximately $230,000 through 2035 (no extension of the final maturity). The Torino Regional Park funding is estimated to be $13 million at an estimated annual debt service of $800,000.
Presentation Information: Staff will be available for questions.
Staff Recommendation: Move that the Council adopt the ordinance for refunding of a portion of the City’s outstanding Special Assessment Refunding Bonds, Series 2016, a portion of the Taxable Special Obligation Refunding Revenue Bonds, Series 2017, and providing funding for Torino Regional Park.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt Ordinance 26-28, Authorizing the Issuance of Not to Exceed $75,000,000 in Aggregate Principal Amount of City of Port St. Lucie, Florida Special Obligation Refunding Revenue Bonds, Series 2026.
2. Move that the Council provide staff direction.
Background: The Special Assessment Refunding Bonds, Series 2016 Bonds were used to (i) advance refund all the City’s outstanding Special Assessment Bonds, Series 2007B (Southwest Annexation Special Assessment District No. 1). The Special Assessment Bonds, Series 2007B refunded the City’s Bond Anticipation Notes, Series 2007B. Proceeds of the City’s Bond Anticipation Notes, Series 2007B were used to construct roadways, potable water, wastewater, and stormwater improvements within the Southwest Annexation Special Assessment District.
The Taxable Special Obligation Refunding Revenue Bonds, Series 2017 Bonds were used to advance refund all the City’s outstanding Special Assessment Refunding Bonds, Series 2008A (City Center Special Assessment District). The Special Assessment Refunding Bonds, Series 2008A refunded and defeased all the Special Assessment Bonds, Series 2006A. Proceeds of the Special Assessment Bonds, Series 2006A Bonds were used to finance the costs of constructing roadway, potable water facilities, wastewater facilities, and stormwater facilities in connection with the development of the Citer Center Special District.
Issues/Analysis: As the Torino Regional Park project progressed and the conceptual design continued to be more refined the constructions costs also were refined. Contributing to the current cost estimate are market conditions and inflation. An additional $13 million in funding will be required to complete the project.
Financial Information: Refunding portions of the City’s 2016 and 2017 bonds will generate an estimated $2 million in net-present-value savings, reducing annual debt service by about $230,000 through 2035, with no change to the final maturity and repayment made from Special Assessment District funds. The estimated annual debt service payments for the $13 million in funding for the Torino Regional Park project are $800,000, which will be repaid with Park Impact Fees.
Special Consideration: N/A
Location of Project: N/A
Business Impact Statement: N/A
Attachments: 1. Ordinance 26-28 Draft
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: Legal Intake #26054-08
Legal Sufficiency Review:
Reviewed/Prepared by Special Bond Counsel. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.