THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The First Florida Governmental Financing Commission ("Commission") was created under the authority of Section 163.01, Florida Statutes, on November 26, 1985 by Interlocal Agreement between the City of St Petersburg, the City of Sarasota and Manatee County (as amended, the “Interlocal Agreement”) and to which, on March 21, 1986, the Commission admitted Broward County as a member. The purpose of the Commission was to issue bonds in order to make loans to its members to finance and refinance capital projects. Each member is responsible only for that portion of the proceeds of each series of bonds issued by the Commission, which the member in turn borrows from the Commission for the member’s own use.
The primary governing document for the Commission is the Interlocal Agreement. The Interlocal Agreement provides that the Commission shall not be dissolved as long as there are outstanding bonds of the Commission or obligations of any participating Government Unit pursuant to the Program. In addition, the Commission may not have less than three members. Unless the Rules of the Commission prescribe a different allocation, the Interlocal Agreement requires each member to be responsible for its pro rata share of the Commission’s expenses until that member has satisfied its loan obligations, and the corresponding Commission bonds have been redeemed.
In addition to the initial members of the Commission, the following municipalities also joined the Commission: Broward County, Florida; the City of Hollywood, Florida; the City of Boca Raton, Florida; the City of Clearwater, Florida; the City of Gainesville, Florida; and Pinellas County, Florida. Since 2016, the three remaining members have been Broward County, Florida; the City of Hollywood, Florida; and the City of St. Petersburg, Florida.
Due to sustained and fundamental changes in the capital markets since 2008, including but not limited to the disappearance of triple-A rated municipal bond insurers, the public finance industry, and the financing needs of its members, the Commission’s leadership after reviewing and evaluating its mission, purpose, and continued viability, elected to provide for the orderly and timely dissolution of the Commission.
On November 4, 2016, the Member Representatives adopted a resolution of intent providing for the dissolution of the Commission at the earliest possible date, after there no longer are any outstanding debt obligations of any participating member.
On February 2, 2017, the Member Representatives adopted a resolution (Exhibit 2) providing for certain amendments to the Commission’s governing documents authorizing the Commission’s dissolution and approving a Plan of Dissolution, which shall become effective between July 1, 2018 and September 30, 2018. The dissolution of the Commission is also contingent upon the approval of certain amendments to the Commission’s Interlocal Agreement by each remaining member’s governing body. The most recent Proposed Dissolution Time Schedule, updated October 1, 2017, is attached as Exhibit 3.
To become effective, the 2017 Amendment to Interlocal Agreement ("2017 Amendment") must be approved by every current member of the Commission. As the City of St. Petersburg and the City of Hollywood already approved the 2017 Amendment, on May 4, 2017 and July 3, 2017, respectively , this agenda item represents the final approval to move ahead with the Dissolution of the Commission.
Finally, while the 2017 Amendment allows for the dissolution of the Commission, also necessary, is the defeasance or refunding of all outstanding bonds. The City of St. Petersburg has no loans outstanding and the final maturity for the City of Hollywood bonds is September 30, 2018; therefore, Broward County's First Florida Governmental Financing Commission Taxable Refunding Revenue Bonds, Series 2005B Bonds must be refunded so the Commission can dissolve. The resolution to approve the refunding of the Series 2005B Bonds is being submitted for Board approval concurrently in a separate item. |