Minutes 05-06-93MINUTES OF THE SPECIAL CITY COI~4ISSION MEETING HELD IN COMMISSION CHAMBERS,
CITY HALL, BOYNTON BEACH, FLORIDA, ON THURSDAY, RAY 6, 1993 AT 6:30
PRESENT
Edward Harmening, Mayor
Jose Aguila, Vice Mayor
David Katz, Commissioner
Lynne Matson, Commissioner
Robert Walshak, Commissioner
J. Scott Miller, City Manager
James Cherof, City Attorney
Sue Kruse, City Clerk
CALL TO ORDER
Mayor Harmening called the meeting to order at 6:50 p.m., for the purpose of
adopting Proposed Resolutions R93-73 and R93-74. These two Resolutions are Bond
Resolutions.
MIchael Hole~ Smtth Barne~, made the presentation. He explained that as men-
tioned at Tuesday night's regular City Commission meeting, he felt this was the
appropriate time to go ahead with the refunding in order to capture debt service
savings near or above the target set by the Commission. The target savings set
by the Commission was $500,000 net present value savings. Smith Barney was
directed to structure the bonds so that there would be no increase in debt ser-
vice or extension of debt service. All of those goals were met.
Smith Barney entered the market yesterday. A handout was presented to summarize
what was accomplished. (A copy of that handout is attached.) Half of the
current reserve was liquidated. A portion of that money was used to purchase a
surety bond to replace the reserve, and that cash deposit, plus upfront cash
savings, constitutes the deposit to the Project Fund. The net present value
savings resulted in $511,983. A total of $1,420,400 was deposited to the
Project Fund.
The handout shows the interest rates of the bonds. All bonds are AAA rated.
The interest rates shown will allow attainment of the target savings level.
Mr. Hole explained that the rates can be locked in today by ad°pting the two
Resolutions presented to the Commission. The issue will be closed in approxi-
mately three weeks.
Proposed Resolutlon No, R93-73 Re: A Resolution authorizing the issuance of
not exceeding $25,000,000 aggregate principal amount of public service tax re-
funding revenue bonds of the City of Boynton Beach (Series 1986 and 1990)
Attorney Cherof read Proposed Resolution No. R93-73:
A RESOLUTION AUTHORIZING THE ISSUANCE OF $20,600,000 AGGREGATE PRINCIPAL
AMOUNT OF PUBLIC SERVICE TAX REFUNDING REVENUE BONDS OF THE CITY OF BOYNTON
BEACH, FLORIDA FOR THE PURPOSE OF PROVIDING FUNDS TO ADVANCE-REFUND THE
CITY'S PUBLIC SERVICE TAX REVENUE BONDS, SERIES 1986 AND SERIES 1990 AND TO
PAY THE COST OF CERTAIN CAPITAL EXPENDITURES; PROVIDING FOR THE PAYMENT OF
SUCH BONDS AND OF ANY ADDITIONAL BONDS AND THE INTEREST THEREON FROM CERTAIN
DESIGNATED REVENUES, PARTICULARLY PUBLIC SERVICE TAX REVENUES; DESCRIBING
THE TERMS, SECURITY AND OTHER PROVISIONS OF SUCH BONDS; SETTING FORTH THE
RIGHTS AND REMEDIES OF THE OWNERS OF SUCH BONDS; PROVIDING SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
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HINUTE$ - SPECIAL CITY COI4NI$$ION #EETING
BOYNTON BEACH, FLORIDA
NAY 6, 1993
Norton
Commissioner Matson moved to approve Proposed Resolution No. R93-73.
Aguila seconded the motion, City Clerk Sue Kruse polled the vote,
Commissioner Walshak - Aye
Mayor Harmening - Aye
Vice Mayor Aguila - Aye
Commissioner Katz - Aye
Commissioner Matson - Aye
The vote was 5-0.
Vice Mayor
Proposed Resolution No. R93-74 Re: Bond Purchase Agreement
Attorney Cherof read Proposed Resolution No. R93-74:
A SUPPLEMENTAL RESOLUTION PROVIDING FOR THE ISSUANCE OF $20,600,000
AGGREGATE PRINCIPAL AMOUNT OF PUBLIC SERVICE TAX REFUNDING REVENUE BONDS,
SERIES 1993; FIXING AND DETERMINING THE PRINCIPAL AMOUNT, INTEREST RATES,
MATURITY DATES, REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS;
SUPPLEMENTING RESOLUTION NO. R93-73; FINDING NECESSITY FOR A NEGOTIATED SALE
OF SUCH BONDS; RATIFYING THE FORM AND USE OF A PRELIMINARY OFFICIAL
STATEMENT IN CONNECTION WITH SUCH BONDS; AUTHORIZING THE EXECUTION OF A BOND
PURCHASE AGREEMENT, A BOND REGISTRAR AND PAYING AGENT AGREEMENT AND AN
ESCROW DEPOSIT AGREEMENT; PROVIDING FOR THE APPLICATION OF THE PROCEEDS OF
SAID BONDS AND CERTAIN OTHER MONEYS; DIRECTING THE REFUNDING OF THE CITY'S
OUTSTANDING PUBLIC SERVICE TAX REVENUE BONDS; AUTHORIZING THE PURCHASE OF A
BOND INSURANCE POLICY AND RESERVE SUBACCOUNT INSURANCE POLICY AND MAKING
CERTAIN COVENANTS IN CONNECTION THEREWITH; CONTAINING CERTAIN AUTHORIZATIONS
AND OTHER PROVISIONS; AND PROVIDING AN EFFECTIVE DATE.
Hotlon
Commissioner Matson moved to approve Proposed Resolution No. R93-74. Vice Mayor
Aguila seconded the motion.
Mayor Harmening questioned the cost to the City. Mr. Hole advised that the
underwriting spread was $8.82 or .88 percent of the issue. That figure is below
the industry norm. Mr. Hole further advised that the Escrow Agent is First
Union.
In response to Mayor Harmening's question, Mr. Hole stated that Bond Counsel
will receive a $25,000 fee.
There was agreement that Mr. Hole had done an excellent job.
Mr. Hole presented a check in the amount of $206,000 for the City to hold as
evidence of good faith to buy the bonds in approximately three (3) weeks.
City Clerk Sue Kruse polled the vote.
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H]'NUTE$,- SPECIAL CITY COI4NIS$ION #EETTNG
BOYNTON BEACH, FLORIDA
14AY 6, 1993
Mayor Harmening - Aye
Vice Mayor Aguila - Aye
Commissioner Katz - Aye
Commissioner Matson - Aye
Commissioner Walshak - Aye
The vote was 5-0.
ADJOURNHENT
There being no further business to come before the Commission, Commissioner
Matson moved to adjourn the meeting at 7:00 p.m. Commissioner Katz seconded the
motion which carried unanimously.
ATTEST:
City~/Cl erk
~cording Secretary (One Tape)
THE CITiZenrY.TON BEACH k
~ Vi ce Mayo r
/// .~-~ - ~ / Co~issioner
' Co~issioner
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May 6, 1993
(.d) Net Release of Debt Service Reserve $950,856
(B) Upfront Cash Savings $469.~i44
(A + B) Total deposit to Project Fund $1,420,400
Net Present Value Savings Target
Final Net Present Value Savings
$500,000
$511,983
1993 2.20% 2.20% 2.20%
1994 2.60 2.60 2.50 2.70
1995 3.40 3.40 3.50 3.30
1996 3.80 3.80 3.75
1997 4.00 4.00 4.10
1998 4.25 4.30 4.50
1999 4.45 4.50 4.70
2000 4.65 4.70 4.85
2001 4.85 4.85 4.95
2002 5.00 5.00 5.05 ' 5.00
2003 5.10 5. I0 5.15 5.10
2004 5.20 5.20 5.25 5.20
2005 5.30 5.30 5.35 5.32
2006 5.40 5.40 5.40 5.42
2007 5.45 5.45 5.50 5.50
2008 5.50 5.50 5.60 5.55
2010 5.567 5.60