City of Gainesville - File #: 180818.

• File #: 180818.
• Version: 2
• Type: Resolution
• Status: Adopted
• File created: 3/8/2019
• In control: Utility Advisory Board
• On agenda: 3/14/2019
• Final action: 3/21/2019
• Title: Resolution Authorizing the Issuance of City of Gainesville Utility System Revenue Bonds 2019 Series C (B)

Date	Ver.	Action By	Action	Result
3/21/2019	2	City Commission	Adopted (Resolution)	Pass
3/14/2019	2	Utility Advisory Board

Title
Resolution Authorizing the Issuance of City of Gainesville Utility System Revenue Bonds 2019 Series C (B)

Explanation
Gainesville Regional Utilities (GRU) is planning the issuance of 2019 Series C revenue bonds. 2019 Series C bonds are a variable rate tax-exempt issue which will:

· Generate $10 million in new proceeds to fund capital projects and
· Restructure certain maturities of existing variable rate bonds.

For a list of the variable rate bonds targeted for restructuring, see Table 1 in the back-up for this item.

Near term debt service savings will be generated by this restructuring through issuing longer term bonds to refund these targeted shorter term maturities. These savings from restructuring will be used to bolster Rate Stabilization Fund balances. While there is a present value savings of $9.1 million from the restructuring portion of the 2019 Series C bonds, there are gross principal and interest dissavings associated with this series over the period FY25 through FY47.
The 2019 Series C bonds will be issued as variable rate demand bonds secured by a direct pay letter of credit issued by Bank of America, N.A. and remarketed upon optional tender by Merill Lynch, Pierce Fenner & Smith, Incorporated as remarketing agent.
This item was presented to the UAB on March 14, 2019.
Fiscal Note
As noted above, the 2019 Series C issue will provide resources to
· Fund $10 million of capital projects
· Refund approximately $57 million of existing variable rate debt
Recommendation:
The City Commission approve the Thirty-First Supplemental Utilities System Revenue Bond resolution and thereby approve the issuance and sale of the 2019 Series C Bonds to the underwriters and approve the form of the Bond Purchase Agreement, Preliminary Official Statement, Continuing Disclosure Agreement, Tender Agency Agreement, Reimbursement Agreement and Fee Letter and Remarketing Agreement and authorize the execution and delivery thereof, subject to approval of the City At...