Agenda

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County Administrator's Report 13. 22.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	11/01/2018
Issue: Issuance of not exceeding $50,000,000 Escambia County, Florida Capital Improvement Refunding Revenue Bonds, Series 2018
From:	JoLinda Herring
Department:	Bryant Miller Olive P.A.
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Issuance of Not Exceeding $50,000,000 Escambia County, Florida, Capital Improvement Refunding Revenue Bonds, Series 2018 to Refund the Escambia County, Florida Capital Improvement Refunding Revenue Bond, Series 2011, Escambia County, Florida Capital Improvement Revenue Note, Series 2013 and Escambia County, Florida Sales Tax Refunding Revenue Bond, Series 2011 - JoLinda Herring, Shareholder, Bryant Miller Olive P.A.

That the Board of County Commissioners (the "Board") adopt a Resolution (the “Resolution”) authorizing the issuance and sale of not exceeding $50,000,000, Escambia County, Florida Capital Improvement Refunding Revenue Bonds, Series 2018 (the “Series 2018 Bonds”), which Resolution includes (i) approval of the refunding of the County's Capital Improvement Refunding Revenue Bond, Series 2011; Capital Improvement Revenue Note, Series 2013, and Sales Tax Refunding Revenue Bond, Series 2011 (collectively, the "Refunded Obligations"), (ii) approval of a form of Bond Purchase Agreement among the County, RBC Capital Markets, LLC, Raymond James & Associates, Inc. and Wells Fargo Bank, National Association, (iii) approval of the distribution of a Preliminary Official Statement and authorization of a final Official Statement, (iv) approval of a form of Continuing Disclosure Certificate and (v) designation of U.S. Bank National Association as both Paying Agent and Escrow Agent.

BACKGROUND:

The proposed Series 2018 Bonds are to be issued to refund all of the remaining amount outstanding of each series of the Refunded Obligations, as follows:

Series	Outstanding Amount(1)	Current Rate	Final Maturity
Capital Improvement Refunding Revenue Bond, Series 2011	$13,955,000	3.780%	October 1, 2031
Sales Tax Refunding Revenue Bond, Series 2011	24,030,000	3.719%	October 1, 2031
Capital Improvement Revenue Note, Series 2013	8,569,000	3.816%	October 1, 2028
After October 1, 2018 Principal Payment	$46,554,000

The proposed refinancing is for debt service savings. The County’s Financial Advisor estimates that the County could realize approximately $1,858,779.63 in net present value savings as a result of the refunding based on the current interest rate market as of October 17, 2018. (The estimated savings are computed net of costs of issuance.)

In connection with the County's recent issuance of its Sales Tax Revenue Bonds, Series 2017, the County’s then financial advisor solicited proposals from underwriters to provide the financing for the issuance of such Bonds (the "2017 Proposals"). RBC Capital Markets, LLC, was selected as the senior managing underwriter, and Raymond James & Associates, Inc. and Wells Fargo Bank, National Association, were selected as co-managers. The County's current Financial Advisor, Public Resources Advisor Group, and staff are recommending the same underwriting team be selected for the issuance of the Series 2018 Bonds on the basis of the 2017 Proposals.

The Series 2018 Bonds are secured by certain Pledged Funds consisting primarily of Non-Ad Valorem Revenues budgeted, appropriated and deposited in the Debt Service Fund created and established under the Resolution. The Series 2018 Bonds do not constitute a general obligation or a pledge of the full faith and credit of the County.

The Resolution and its attachments have been prepared by Bryant Miller Olive P.A., the County’s Bond Counsel, and have been reviewed and approved by staff and by the County’s Financial Advisor.

BUDGETARY IMPACT:

The Financial Advisor reports that the estimated Maximum Bond Service Requirement of the Series 2018 Bonds, given current market conditions, is expected to be approximately $4,709,000 and will mature no later than October 1, 2031. The combined Maximum Bond Service Requirement of the Refunded Obligations is $4,906,169 and have a final maturity date of October 1, 2031. It is estimated that the issuance of the Series 2018 Bonds will result in a annual debt service savings to the County.

LEGAL CONSIDERATIONS/SIGN-OFF:

Documents drafted in connection with the proposed refinancing are being distributed to the County staff, including the County Attorney’s office for review, comment and approval as they are prepared. The County Attorney has signed off on the Resolution. Further, the County Attorney will render her opinion as to legality, and the County’s Bond Counsel will render their opinion as to tax-exemption as a condition of closing.

PERSONNEL:

None.

POLICY/REQUIREMENT FOR BOARD ACTION:

The issuance of the Series 2018 Bonds will comply with the Board’s requirements for the issuance of County Bonds.

IMPLEMENTATION/COORDINATION:

Execution by the authorized officers of the Board of the final financing and closing documents will be required at or prior to the Closing.

Attachments
Resolution