Subject:
Title
Approval to Issue Solid Waste Management System Revenue Bonds, Series 2023 within the Parameters Established by the Board of County Commissioners
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Fiscal Impact:
The Solid Waste Management System Revenue Bonds, Series 2023 (“Series 2023 Bonds”) will be issued in a not to exceed $55 million aggregate principal amount with an estimated annual debt service payment of $3,500,000. The annual debt service payments will be funded from the revenues collected by the Solid Waste Management Department’s (“the Department”) Disposal fees. The Department’s Board-approved rates will be sufficient to fund the debt service payments for the Series 2023 Bonds.
Dept/Office:
Solid Waste Management Department
Requested Action:
Recommendation
It is requested that the Board of County Commissioners (“the Board”):
1. Establish the following parameters for the public sale of the Solid Waste Management System Revenue Bonds, Series 2023 (Series 2023 Bonds): not to exceed $55 million aggregate principal amount, an underwriting discount (including management fee and expenses) not in excess of 0.40 percent of the par amount of the Series 2023 Bonds, and true interest cost for the Series 2023 Bonds of not exceeding 5 percent, and the final maturity being no later than September 1, 2053; and
2. Approve the Amended and Restated Solid Waste Management System Bond Resolution and Supplemental Resolution and authorize the Chair to sign resolutions, and;
3. Delegate authority to the Chair for the authorization, execution, and delivery of a purchase contract with the underwriters of the Series 2023 Bonds within the parameters established by the Board, and;
4. Authorize the County Manager to make the necessary budget amendments to recognize the bond proceeds from the issuance of the Series 2023 Bonds, and establish the funds and accounts required by the Amended and Restated Solid Waste Management System Revenue Bond Resolution.
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Summary Explanation and Background:
On April 19, 2022, the Board authorized staff to research the most efficient method for the financing of the Department’s Capital Improvement Program (CIP) needs, including an engineering study that is required for the publicly issued bonds. On July 11, 2023, staff updated the Board on the Department’s FY 2023 - 2028 CIP requirements. As identified on July 11, 2023, this will be the first publicly issued bond to fund the Department’s CIP needs since 1997.
County staff (County Manager’s Office, County Attorney’s Office, Budget Office, County Finance, and the Solid Waste Management Department) have been working with the third-party Engineer, Neel-Schaffer, Inc.; the County’s Bond Counsel, Nabors Giblin & Nickerson, P.A.; the County’s Disclosure Counsel, Bryant Miller Olive P.A.; the County’s Financial Advisor, PFM Financial Advisors LLC; Underwriter Team, Raymond James & Associates, Inc. and Truist Securities, Inc., and designated Registrar and Paying Agent, US Bank Trust Company, National Association.
Included in your agenda package are the following documents:
• The Amended and Restated Solid Waste Management System Bond Resolution. The County’s Bond Counsel and Financial Advisor felt it was necessary and desirable to amend and restate the County's existing Bond Resolution, adopted by the Board on November 25, 1997. The Amended and Restated Bond Resolution is being adopted pursuant to the provisions of the Constitution of the State of Florida, Chapter 125, Florida Statutes, Chapter 67-1146, Laws of Florida, Chapter 70-594, Laws of Florida, and the County’s Charter.
• The Supplementing Resolution authorizing the issuance of not to exceed $55 million in aggregate principal amount of the Series 2023 Bonds to finance capital improvements of the Department described therein, all within the parameters established by the Board.
• The Supplemental Resolution includes four Exhibits which are also included in your agenda package: Exhibit A --General Description of the Project; Exhibit B -- Form of Purchase Contract; Exhibit C -- Form of Preliminary Official Statement which is used by the County and the underwriters to inform investors of the terms of the Series 2023 Bonds; and Exhibit D -- Form of Continuing Disclosure Certificate.
The County anticipates entering the market to publicly sell the Series 2023 Bonds in September or when it's most advantageous for the County to enter the market. At the close of the public sale and the issuance of the Series 2023 Bonds, the County Manager will report to the Board the results of the sale.
Clerk to the Board Instructions:
Please sign and attest three (3) copies of the Amended and Restated Solid Waste Management System Bond Resolution and the Supplemental Resolution with one copy sent to the County Manager’s Office, one copy sent to the County Attorney’s Office, and one copy sent to the Solid Waste Management Department