Agenda

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County Administrator's Report 12. 20.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	12/08/2011
Issue: Issuance of not exceeding $20,000,000 Escambia County, Florida Capital Improvement Refunding Revenue Bond, Series 2011, to evidence a bank loan to fin
From:	Amy Lovoy
Department:	OMB
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Refinancing the 2002 Capital Improvement Revenue Bonds - Amy Lovoy, Management & Budget Services Department Director

That the Board of County Commissioners adopt a Resolution (the “2011 Resolution”) authorizing the issuance and sale of a not exceeding $20,000,000 Escambia County, Florida, Capital Improvement Revenue Bond, Series 2011 (the “2011 Bond”), which 2011 Resolution approves the bank loan and issuance of the 2011 Bond, approves by reference a form of Escrow Deposit Agreement between the County and an Escrow Holder to be designated by the Chairman or his designee prior to issuance of the 2011 Bond and approves the execution and delivery of a Forward Rate Lock, if required.

BACKGROUND:

The proposed 2011 Bond is to be issued to evidence a bank loan for the purpose of refinancing all or a portion of the outstanding Capital Improvement Revenue Bonds, Series 2002 (the “Refunded 2002 Bonds”) issued pursuant to Resolution R2002-200 adopted by the Board on November 19, 2002. The Refunded 2002 Bonds were issued to finance certain capital improvements of the County located on Santa Rosa Island.

The proposed refinancing is for debt service savings and to provide for the release of certain covenants with respect to the Refunded 2002 Bonds. The interest rate of 3.14% is locked until December 9, 2011. The refinancing has been structured to provide the savings to the County over the life of the 2011 Bond.

The net proceeds of the 2011 Bond will be deposited into an Escrow Account created under the Escrow Deposit Agreement. Such amount will be held in cash and invested in Federal Securities, United States government obligations and will be sufficient, together with interest earnings thereon, to pay and retire the Refunded 2002 Bonds on October 1, 2012, the first possible optional redemption date.

The 2011 Bond is secured by a covenant to budget and appropriate from available Non-Ad Valorem Revenues, releasing as to the 2011 Bond the pledge of Net Toll Revenues and Lease Revenues. The 2011 Bond does not constitute a general obligation or a pledge of the full faith and credit of the County.

BUDGETARY IMPACT:

This refinancing will result in net present value savings of almost $2,600,000 or 13.95%.

LEGAL CONSIDERATIONS/SIGN-OFF:

The 2011 Resolution and its attachment has been prepared by McGuireWoods LLP, the County’s Bond Counsel, and has been reviewed and approved by staff and by the County’s Financial Advisor, First Southwest.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

These Bonds will comply with the Board’s requirements for the issuance of County Bonds.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Bond Resolution
2002CIP Refinancing