File #: RES. NO. 2024-R-38    Version: 1 Name:
Type: Resolution Status: Agenda Ready
File created: 7/10/2024 In control: City Commission Regular Meeting
On agenda: 9/10/2024 Final action: 9/10/2024
Title: A Resolution of the City Commission of the City of North Port, Florida Authorizing the Issuance of Not Exceeding $ 60,000,000 in Aggregate Principal Amount of City of North Port, Florida Infrastructure Sales Surtax Revenue Bonds, Series 2024, to Finance Costs of Certain Transportation Related Capital Improvements; Pledging Proceeds of the Local Government Infrastructure Sales Surtax Received by the City and Certain Other Funds to Secure Payment of the Principal of and Interest on Bonds Issued Hereunder; Providing for the Rights of the Holders of Bonds Issued Hereunder; Making Certain Other Covenants and Agreements in Connection with Bonds Issued Hereunder; Authorizing the Awarding of Said Series 2024 Bonds Pursuant to a Public Bid; Delegating Certain Authority to the City Manager for the Award of the Series 2024 Bonds and the Approval of the Terms and Details of Said Series 2024 Bonds; Appointing the Paying Agent and Registrar for said Series 2024 Bonds; Authorizing the Distribution of...
Attachments: 1. Resolution, 2. Exhibit A - Form of Official Notice of Sale, 3. Exhibit B - Form of Preliminary Official Statement, 4. Exhibit C - Form of Continuing Disclosure Certificate

TO:                                           Honorable Mayor & Members of the North Port Commission

 

FROM:                      A. Jerome Fletcher II, ICMA-CM, MPA, City Manager

 

TITLE:                     A Resolution of the City Commission of the City of North Port, Florida Authorizing the Issuance of Not Exceeding $60,000,000 in Aggregate Principal Amount of City of North Port, Florida Infrastructure Sales Surtax Revenue Bonds, Series 2024, to Finance Costs of Certain Transportation Related Capital Improvements; Pledging Proceeds of the Local Government Infrastructure Sales Surtax Received by the City and Certain Other Funds to Secure Payment of the Principal of and Interest on Bonds Issued Hereunder; Providing for the Rights of the Holders of Bonds Issued Hereunder; Making Certain Other Covenants and Agreements in Connection with Bonds Issued Hereunder; Authorizing the Awarding of Said Series 2024 Bonds Pursuant to a Public Bid; Delegating Certain Authority to the City Manager for the Award of the Series 2024 Bonds and the Approval of the Terms and Details of Said Series 2024 Bonds; Appointing the Paying Agent and Registrar for said Series 2024 Bonds; Authorizing the Distribution of a Preliminary Official Statement and the Execution and Delivery of an Official Statement with Respect to Such Series 2024 Bonds; Authorizing the Use of an Official Notice of Sale and the Publication of a Summary Thereof; Authorizing the Execution and Delivery of a Continuing Disclosure Certificate for the Series 2024 Bonds; Delegating Authority to the City Manager with Respect to the Potential Procurement of Municipal Bond Insurance for the Series 2024 Bonds; Delegating Authority to the City Manager to Determine the Reserve Account Requirement for the Series 2024 Bonds and Whether to Utilize a Reserve Account Insurance Policy with Respect Thereto; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.

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Recommended Action

 

Approve Resolution No. 2024-R-38 as presented.

 

Background Information

 

The following provides a chronological order of events pertinent to proposed Resolution No. 2024-R-38:

 

Ø                     May 24, 2022: During the City Commission Regular Meeting, the Commission approved Ordinance No. 2022-12 which called for a referendum question to be placed before the qualified voters of the City of North Port, Florida, at the November 8, 2022, General Election. The purpose of the referendum question was to determine whether to finance the Price Boulevard Widening Project through the issuance of bonds in one or more series, payable from the proceeds of a voter approved County-wide one-cent sales tax.

 

Ø                     November 8, 2022:  During the General Election, a majority (approximately 65.7%) of voters casting ballots in such election approved the issuance of the bonds in one or more series payable from one-cent sales tax proceeds in a total aggregate principal amount not to exceed $80,000,000, maturing by December 31, 2039, bearing interest not exceeding the maximum lawful rate to finance the Price Boulevard Phase I Widening Project.

 

Ø                     September 2024:  The purpose of this Bond Resolution is to set forth the terms and conditions for the issuance of the bonds in an amount not to exceed $60,000,000 in aggregate principal amount of Infrastructure Sales Surtax Revenue Bonds, Series 2024; to pay for the acquisition, constructions, and equipping of the Price Boulevard Phase I Widening Project. Among other things, the Bond Resolution for Series 2024 Bonds accomplishes the following:

 

ü                     Pledges the proceeds of the local government infrastructure sales surtax received by the City and certain other funds to secure payment of the principal and interest on bonds.

 

ü                     Makes certain other covenants and agreements in connection with the bonds.

 

ü                     Authorizes the award of the bonds to a public bid.

 

ü                     Delegates certain authority to the City Manager for the award of the bonds and the approval of the terms and details.

 

ü                     Appoints the paying agent and registrar for the bonds.

 

ü                     Authorizes the distribution of a preliminary official statement and the execution and delivery of an official statement and the execution and delivery of an official statement with respect to such bonds.

 

ü                     Authorizes the use of an official notice of sale and publication of a summary.

 

ü                     Authorizes the execution and delivery of a continuing disclosure certificate for the bonds.

 

ü                     Delegates authority to the City Manager with respect to the potential procurement of municipal bond insurance for the bonds.

 

ü                     Delegates authority to the City Manager to determine the reserve account requirement for the bonds and whether to utilize a reserve account insurance policy.

 

These bonds will finance the Price Boulevard Widening Phase I Project which will widen Price Boulevard to four travel lanes and a continuous bi-directional left-turn lane between Sumter Boulevard and Toledo Blade Boulevard. It will also include a multi-use path on both sides of the roadway.

 

The City’s Bond Counsel prepared Resolution No. 2024-R-38.

 

Resolution No. 2024-R-38 has been reviewed by the City Attorney and is legally correct as to form.

 

Strategic Plan

 

Good Governance

 

Financial Impact

 

Not to exceed $60,000,000 in bond issue for Price Boulevard Widening Phase I Project (R15PW1). The debt payments (principal and interest) will be payable from sales surtax revenues.

 

Procurement

 

Not applicable.

 

Attachments:

1.                     Resolution

2.                     Exhibit A - Form of Official Notice of Sale

3.                     Exhibit B - Form of Preliminary Official Statement

4.                     Exhibit C - Form of Continuing Disclosure Certificate

 

 

 

Prepared by:                                            Tiffany Fowler, Accountant III

 

Department Director:                       Kimberly Williams, Finance Director