Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 23-24, Public Hearing, Authorizing the Issuance of Not to Exceed $49,000,000 in Aggregate Principal Amount of the City ‘s General Obligation Refunding Bonds, Series 2023 in Order to Achieve Debt Service Savings.
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Submitted By: Stephen Okiye, Finance Director, Finance Department.
Strategic Plan Link: The City’s Mission to be financially responsible.
Executive Summary (General Business): Staff recommends the City of Port St. Lucie, Florida issue General Obligation Refunding Bonds, Series 2023, for the principal purpose of refunding the City’s outstanding General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014, to achieve debt service savings for the City. The debt service savings is estimated to result in $3.2 million of net present value debt service savings (net of all issuance costs) or 6.6% of the Refunded Bonds par amount, which equates to annual savings of approximately $325,000 through 2035.
Presentation Information: Staff will be available to answer questions.
Staff Recommendation: Move that the Council adopt the ordinance for refunding of the City’s outstanding General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014. The Series 2014 Bonds were used to (i) refund the City's General Obligation Bonds, Series 2005, (ii) refund the City's General Obligation Bonds, Series 2006, and (iii) to finance costs associated with Crosstown Parkway.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the ordinance for refunding of the City’s outstanding General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014.
2. Move that the Council provide staff direction.
Background: The General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014, were issued on March 18, 2014. The original par amount was $74,740,000 maturing in 2035 and 2029 respectively. Refunding the City’s outstanding General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014, will result in debt savings to the City and its citizens.
Issues/Analysis: N/A
Financial Information: Refunding the General Obligation Bonds, Series 2014 and General Obligation Refunding Bonds, Series 2014, will result in an estimated net present value debt service savings of $3.2 million, which equates to annual savings of approximately $325,000 through 2035.
Special Consideration: N/A
Location of Project: N/A
Attachments: 1. Ordinance 23-XX 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: N/A
Legal Sufficiency Review:
Reviewed/Prepared by Special Bond Counsel. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.