SUBJECT:
Title
Adoption of Resolution Relating to Utility System Revenue Refunding Bond, Series 2021A/2022A
Body
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INITIATOR: |
DEPARTMENT: |
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Matthew G. Minter, County Attorney |
Legal |
DESCRIPTION/BACKGROUND:
Attached is a resolution proposed to be adopted by the Board of County Commissioners at its meeting on May 4, 2021, which was received from Nabors, Giblin & Nickerson, P.A., bond counsel for Marion County. The resolution supplements the County's Amended and Restated Utilities System Revenue Bond Resolution Number 93-R-292 and is related to advance refunding all of the County's Utilities System Revenue Refunding Bonds, Series 2012 in order to achieve debt service savings.
This Resolution authorizes a taxable utility system revenue refunding bond to be issued to T.D. Bank, N.A. (for a principal amount not to exceed $29,000,000 at a fixed rate of interest of 1.93% and, at the County's option, such bond may be exchanged for a tax-exempt bond issued by the County after September 5, 2022 for a fixed rate of interest of 1.57%), provides for certain details regarding the bonds, outlines certain bond covenants of the County and provides authorization for the Chair and Clerk to execute certain documents related to such bond issuances and authorizes the refunding of the outstanding Series 2012 Bonds. The required delay in exchanging the taxable for a tax-exempt bond in 2022 is due to certain Internal Revenue Code restrictions relating to advance refundings. The bonds are payable solely from net revenues and connection fees of the County's utility system.
BUDGET/IMPACT:
The refunding generates approximately $3.2 million of net present value debt service savings (net of all costs associated with completing the transaction). This equates to approximately $621,000 annually through 2033, which also takes into account a debt service reserve fund release of approximately $4 million.
RECOMMENDED ACTION:
Recommended action
Motion to adopt the attached Resolution and authorize the Chairman and Clerk to execute same.
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