Broward County Commission Regular Meeting

A. MOTION TO OPEN Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”) relating to the issuance of one or more series of tax-exempt industrial development revenue bonds, in an aggregate principal amount not exceeding $100,000,000, for financing the cost of acquisition, construction and equipping of certain wastewater/sewerage facilities and solid waste disposal facilities, including functionally related and subordinate facilities, of Florida Power & Light Company.

ACTION:  (T-12:19 PM)  Approved.

VOTE: 9-0.
 

B. MOTION TO ADOPT Resolution No. 2018-431 of the Board of County Commissioners of Broward County, Florida (“County”), approving the issuance of Broward County, Florida, Industrial Development Revenue Bonds (Florida Power & Light Company Project), in an aggregate principal amount not exceeding $100,000,000, for financing the cost of acquisition, construction and equipping of certain wastewater/sewerage facilities and solid waste disposal facilities, including functionally related and subordinate facilities, (collectively, the “Project”) of Florida Power & Light Company (“FPL”) within the meaning of Section 147(f) of the Internal Revenue Code of 1986, as amended; approving FPL’s application for issuance of the bonds; approving the form of, and authorizing the execution and delivery of, a Memorandum of Agreement between the Company and FPL, specifying terms and details for the issuance and sale of said bonds; declaring the County’s official intent to seek reimbursement for certain expenditures made or to be made with respect to the Projects by FPL from the proceeds of the bonds; authorizing the negotiated sale of the bonds; and providing for an effective date.

ACTION:  (T-12:19 PM)  Approved.

VOTE: 9-0.

Motion A: The Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) and related regulations concerning tax-exempt, exempt facility private activity bonds require that a public hearing be held by the local elected governmental body prior to bond issuance.

Motion B: Florida law and Section 18.62 of the Broward County Administrative Code require that the Board of County Commissioners of Broward County, Florida, authorize the issuance of bonds and other related matters prior to bond issuance.

Motion A: Ensures compliance with the Internal Revenue Code and related regulations by holding the public hearing.

Motion B: Ensures compliance with the requirements of Florida law and Section 18.62 of the Broward County Administrative Code by approving the issuance of the bonds and other related matters.

None.

THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.

Florida Power & Light Company (“FPL”) is the primary electrical utility in Broward County. It is currently a wholly-owned subsidiary of NextEra Energy, Inc., a publicly traded company listed on the New York Stock exchange. FPL seeks tax-exempt financing in an amount not to exceed $100 million dollars for financing the cost of acquisition, construction and equipping of certain wastewater/sewerage facilities and solid waste disposal facilities, including functionally related and subordinate facilities (collectively, the “Project”), at FPL’s Dania Beach Clean Energy Center in Broward County. FPL estimates an annual payroll of $2.3 million and $297 million ad valorem tax revenues generated over the 40-year life of the plant.

The Broward County Bond Review Committee met on August 9, 2018, to review the application for bond financing submitted by FPL. As evidenced by Exhibit 1, the Committee voted unanimously to recommend the Project for bond financing.

Motion A provides for a public hearing in accordance with Section 147(f) of the Internal Revenue Code and related Treasury Regulations regarding the issuance of tax-exempt industrial development revenue bonds. This hearing has been properly noticed as evidenced by the Proof of Publication attached to the Resolution (Exhibit 2). A script for this hearing is attached as Exhibit 3, and should be read into the Official Record by the presiding hearing officer.

Motion B approves issuance of tax-exempt Broward County, Florida, Industrial Development Revenue Bonds, Series 2018 (Florida Power & Light Company Project), in an aggregate principal amount not exceeding $100,000,000. The bonds will be issued pursuant to a delegated negotiated sale. The bond proceeds will be used for the purpose of making a loan of funds to the company to finance the cost of the Project. The bonds will be payable solely from revenues and proceeds derived from the company’s operations, and will not constitute a debt, liability, or obligation of the County. Terms, conditions, and details for issuance and sale of the bonds are set forth in the Memorandum of Agreement attached as Exhibit B to the Resolution. Upon approval of Motion B, financing agreements necessary for issuance and sale of the bonds, including a loan agreement and bond trust indenture, will be negotiated for future consideration by the Board.

George Tablack, CPA, Chief Financial Officer, (954) 357-7130