| | | | | | | | | ITEM 13. County Manager - Consent |
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| | | | | | | | DATE: | June 18, 2019
| DEPARTMENT: | County Manager
| REQUESTER: | Peter Winton
| TITLE: | Approve Underwriter Selection for Tourist Development Tax Bonds Refinancing |
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| | | | | | | | I. | MOTION REQUESTED | | A) Approve selection of Bank of America Merrill Lynch (BofAML) as Senior Underwriter for the refinancing of the Tourist Development Tax Bonds Series 2010A (Build America Bonds). |
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| | | | | | | | II. | ITEM SUMMARY | | Select Bank of America Merrill Lynch (BofAML) as Senior Underwriter for the refunding of the Tourist Development Tax Bond, Series 2010A (Build America Bonds). These bonds were originally issued to build the spring training facility for the Boston Red Sox. Current market rates indicate a net present value savings of 9.8% ($4.2 million gross savings and $3.5 million net present value) but actual savings will be determined at pricing. The term of the bonds will not be extended. |
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| | | | | | | | III. | BACKGROUND AND IMPLICATIONS OF ACTION |
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| | | | | | | | | A) | Board Action and Other History | | | The Series 2010A and Series 2010B Bond proceeds were used to acquire land and construct a major league spring training facility for the Boston Red Sox, built on Daniels Parkway. Only the Series 2010A bonds are being refinanced because the structure of the Series 2010B bonds does not show refinancing savings at this point in time. |
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| | | | | | | | | C) | BoCC Goals | | | Based on evaluation by the County’s Financial Advisor, Dunlap & Associates Inc., there appears to be savings in refunding of the Series 2010A Bonds of 9.8% ($3.5 million of net present value). The Board has a policy of paying down debt and refinancing debt that generates at least 3% net present value savings. |
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| | | | | | | | | D) | Analysis | | | TDT Revenue Bonds Series 2010A (Build America Bonds) original issue $42,480,000 remaining principal balance as of April 30, 2019 is $39,795,000. It is anticipated to refund only the callable bonds (maturities 2021-2033). The 2019 and 2020 will remain outstanding as they are not callable.
The County received responses from a variety of capable underwriters. A matrix summary of the proposals was prepared by Dunlap & Associates, Inc. which details the proposed underwriter’s expenses. |
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| | | | | | | | | A) | Current year dollar amount of item:
| No funding required. | | B) | Is this item approved in the current budget? | N/A | | C) | Is this a revenue or expense item? | | | D) | Is this Discretionary or Mandatory? | Discretionary | | E) | Will this item impact future budgets?
If yes, please include reasons in III(D) above.
| No | | F) | Fund:
Program:
Project:
Account Strings: | | G) | Fund Type? | | | H) | Comments: |
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REVIEWERS: | Department | Reviewer | Action | Date | County Manager | Winton, Peter | Approved | 6/7/2019 - 4:12 PM | Budget Services | Guttery, Angela | Approved | 6/7/2019 - 4:37 PM | Budget Services | Winton, Peter | Approved | 6/9/2019 - 4:39 PM | County Attorney | Fraser, Andrea | Approved | 6/10/2019 - 8:41 AM | County Manager | Winton, Peter | Approved | 6/10/2019 - 8:55 AM |
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