Title
Amended and Restated Subordinated Utilities System Revenue Bond Resolution (B)
Explanation
On January 30, 2003, the City Commission adopted a resolution amending and restating the City's Utilities System Revenue Bond Resolution (for senior lien Bonds) to provide more flexibility and save money. The bond rating agencies accepted these changes and one even upgraded our rating. The major amendments included, but were not limited to: a) Eliminating the Debt Service Reserve Requirement for Bonds; (b) Eliminating the requirement that the City retain a consulting engineer and providing that an official of the City, rather than a consulting engineer, will deliver certain certificates in connection with the issuance of additional Bonds and certain other matters;(c) Liberalizing the definition of Investment Securities;(d) Providing that the City, rather than the Trustee, holds the Construction Fund; and(e)Providing certain changes to the purposes for which moneys on deposit in the Utility Plant Improvement Fund may be used.
We have received the requisite amount of bondholder consents needed to make these amendments effective, and are in a waiting period given to bondholders under the Bond Resolution before they actually take effect.
In addition to issuing Bonds under the Bond Resolution as senior lien debt, the Utility has issued debt subordinated to those senior lien Bonds under a Subordinated Bond Resolution originally adopted on January 26, 1989. Currently, we have our Tax-exempt and Taxable Commercial Paper and 2002 Series A and B Bonds outstanding under the Subordinated Bond Resolution. We recommend making certain amendments to the Subordinated Bond Resolution in order to conform the provisions of the Subordinated Bond Resolution to the amended and restated senior lien Bond Resolution adopted on January 30, 2003. The attached Resolution incorporates by reference and adopts an Amended and Restated Subordinated Utilities System Revenue Bond Resoluti...
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