Fort Walton Beach Council agenda — 04-12-05 — reading text

replaces the aging secondary treatment process with an Oxidation Ditch treatment facility in order to standards set by the maintain operations and assure compliance with increasingly stringent discharge Environmental Protection Agency and the Florida Department of Environmental Protection. Ordinance 1633, prepared by the City' s Bond Counsel, authorizing the issuance of Utility System Revenue Bonds, Series 2005 not to exceed $ 11, 000, 000 was approved by Council on first reading at the March 22, 2005 meeting. Discussion The Financial Advisor RBC Dain Rauscher prepared the 30- year financing plan for the water and wastewater improvements. Ordinance 1633 provides for a Utility System Revenue Bond issuance not to exceed $ 11, 000, 000. The amount to be borrowed is approximately $ 10, 695, 000 (par value) for 30 years at an estimated all- inclusive rate of 4. 89%, per the Financing Plan. Other financing documents include a and other pertinent Preliminary Official Statement which provides an overview of the financing plan matters of which bond purchasers may have an interest. The bond issue includes proceeds to fund the planning, design and construction costs and bond issuance costs including: bond counsel, financial advisor services, underwriter' s discount, original issue discount DID), credit enhancement, debt service reserve and other related expenses. The costs associated with the bond issue are estimated as follows: I. Bond Counsel/Disclosure Counsel Miller Canfield Paddock & Stone 30, 000 Financial Advisor RBC Dain Rauscher 20,000 Auditor O' Sullivan Creel 1, 000 Not Yet Determined 750 Paying Agent/Registrar Not Yet Detennined 7, 500 Official Statement Printing Bond Rating Fitch, Moody' s, S& P 31, 000 Underwriters Discount AG Edwards 54, 000 Credit Enhancement- Premium Not Yet Determined 75. 000 219, 250 1/ j in' 1 45- b h1 the event there are any excess project construction funds, the Utilities Fund will be reimbursed for any used for costs. Annual debt service is approximately $ 507, 000, retained earnings it hasalready project increasing to approximately $ 743, 000 in later years after other Utilities Fund debt is repaid. The bonds will be secured by a pledge of the Utilities Fund Net Revenues. A budget amendment will be brought to Council in August to adjust the Utilities Fund budget for the bond issue and subsequent debt service payments for fiscal year 2004-2005. Mr. Mitch Owens of RBC Dain Rauscher will be present at the Council meeting to answer any questions. An estimated timeline for the issuance of the bonds is provided. The City' s Bond Counsel has prepared Ordinance 1633. Ms. Pat Lott with Miller, Canfield, Paddock and the bond ordinance and debt Stone will also be present at the meeting to answer any questions relating to issuance. Recommendation Staff respectfully requests adoption of Ordinance 1633, by title, on second reading. Mike Burton Financ~ ector V Concur Do Not Concur uJ"'lJO/ Attachments: a) Ordinance 1633 b) Financing plan-RBC Dain Rauscher 2  page 1 01 1 Deborah Turner From: AttyCrg@aol.com Sent: Wednesday, April 06, 2005 11 : 17 AM To: Deborah Turner; Mike Burton Subject: Ordinance 1633 Ordinance 1633 is approved as to form. Toni L.Craig Attorney at Law Fla. Bar No. 0115444 151 Mary Esther Blvd Ste 408 Mary Esther FL 32569 850) 243- 6969 Fax: ( 850) 244- 8929 Accountability -- Pride - Commitment not be disseminated The information contained in this email maby be A TTORNEY- CLlENT privileged and should to or viewed by anyone other than the named If recipient. you are uncertain, please ask. 4/ 6/ 2005  ORDINANCE NO. of f.3J CITY OF FORT WALTON BEACH, FLORIDA NOT EXCEEDING $ 11, 000, 000 UTILITY SYSTEM REVENUE BONDS SERIES 2005 MCPS-02/ 24/ 05 Rev. 03/ 08/ 05 Rev. 03/14/ 05- 660 I- Ordinance Rev. 03/ I6/ 0S-c1  TABLE OF CONTENTS 1 Section 1 Authority For This Ordinance ....................................................... .......... 1 Section 2 Definitions.. ..... ........ ...................... ................................. ............. ....... 9 Section 3 Findings............................................................................................. This Ordinance to Constitute a Contract .................................................. 10 Section 4. Authorization of Proj ect.......... ................. .... ........... .......... ...... ....... ...... 10 Section 5, 10 Section 6. A~thorization of Bonds................................................ ........... ............. 10 Section 7. Description of 2005 Bonds.... ....... ........................ .......... ................ ........ 11 Section 8. Execution of 2005 Bonds .. ....... ................. ............... ...... ............ ........... 11 Section 9. Negotiability and Registration........................ ................................ ........ Bonds Mutilated, Destroyed, Stolen or Lost ............................................... 13 Section 10. 13 Section 11. Provisions for Redemption ................................... ......................... ... ..... 15 Section 12. Form of Bonds ..... ...... ... ........ ....... ... ................ ...................... ............. 23 Section 13. Application of 2005 Bond Proceeds ................................................. ........ 23 Section 14. Special Obligations of the Issuer ............... .......... ............................ ........ 23 Section 15. Covenants of the Issuer ................................................................ ........ 24 A) REVENUE FUND. .. .............. ......... ...... ......... .......... ................... ....... ........... ............. ..................... ............ 24 B) SINKING FUND. ....... ............................... ................ .................... .......... ..... ............. ..................... ............ 27 D) OPERATION OF BOND AMORTIZATION ACCOUNT.