Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-43, Public Hearing, Authorizing the Issuance of Refunding Revenue Bonds, Series 2022, Not to Exceed $16,000,000 for Refunding the City’s Outstanding Utility Systems Refunding Revenue Bonds, Series 2012, 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 Utility System Refunding Bond, Series 2022, for the principal purpose of refunding the City’s outstanding Utility System Refunding Revenue Bonds, Series 2012, to achieve debt service savings for the City. The debt service savings is estimated to result in $1.4 million of net present value debt service savings (net of all issuance costs) or 8.85% of the Refunded Bonds par amount, which equates to annual savings of approximately $215,000 annually through 2029.
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 City Council may pose
Staff Recommendation: Move that the Council adopt the ordinance for refunding of the City’s outstanding Utility System Refunding Revenue Bonds, Series 2012. The Series 2012 Bonds were used to (i) advance refund a portion of the City's Utility System Revenue Bonds, Series 2003, (ii) advance refund a portion of the City's Utility System Revenue Bonds, Series 2004, and (iii) pay certain expenses related to the issuance and sale of the Series 2012 Bonds.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the ordinance.
2. Move that the Council provide direction to staff.
Background: Utility System Refunding Revenue Bonds, Series 2012, were issued on July 18, 2012. Original Par Amount was $21,375,000 maturing in 2029. Refunding the City’s outstanding Utility Systems Refunding Revenue Bonds, Series 2012, will result in debt savings to the City and its citizens.
Issues/Analysis: N/A
Financial Information: Refunding the Utility Systems Refunding Revenue Bonds, Series 2012, will result in an estimated net present value debt service savings of $1.4 million, which equates to annual savings of approximately $215,000 through 2029.
Special Consideration: N/A
Location of Project: N/A
Attachments:
1. Ordinance
2. Exhibit “A” to Ordinance - Proposal of Professional Bank
3. Exhibit “B” to Ordinance - Form 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: 8272
Legal Sufficiency Review:
Reviewed/Prepared by Special Bond Counsel. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.