4/13/1993 - Laserfiche WebLink

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restriction -that any new debt must be subordinate to it. We refinanced our water and sewer assessments to property owners in North County and in Rockridge. They were paying 9.75 percent and the new bonds would allow financing on the assessments at 6.75 percent, which will be a saving for the property owners. Additionally, by refinancing the six bond issues that we had for water and sewer and consolidating them into one issue, we have a future value savings of $1,620,700.00. The Farmer's Home Administration bonds were 40 -year bonds; these will be 32 -year bonds. Arthur H. Diamond, of Fishkind & Associates, financial advisors to the County, stated that the bond issues are the result of a lot of hard work. It was a complicated situation because six bond issues were refinanced. In the process we removed the first lien of Farmer's Home Administration from the County's financing, we unified the system under one bond document, and we made that document more flexible for the County. Mr. Diamond pointed out that the County's reputation in the financial market is respected because of the way the County is governed and that makes a difference in any financing. Ed Bulleit, representative of William R. Hough & Company, distributed a booklet containing all the pertinent figures of the new bond issue. He characterized it as one of the most complicated requests for proposals in his experience because we are refinancing six different transactions. In the initial phases of this project, other firms said that this deal would never get done. Mr. Bulleit admitted that his firm doubted whether we could ever accomplish a rate that would produce this transaction. He stated that because of County staff's efficient work we moved within a week and a half, had this deal insured and got an A rating from Moody's. This document is one of the most flexible water and sewer documents to be rated A. He stated that it was to the County's- benefit to remove the Farmer's Home Administration lien because of the potential for graduation and because of the restrictions. Mr. Bulleit further explained that by defeasing the six bond issues we also eliminated the time and expense involved with administering those six individual bond issues. Chuck Beick, Rhoads & Sinon, bond counsel for Indian River County, explained that two resolutions were prepared. The first resolution authorizes the retirement of the six bond issues that are being retired, authorizes the capital project with the new money portion of the bond issue and authorizes the bond issues. The second resolution awards the bonds to William R. Hough & Company and specifies details for the paying agent, the escrow for 39 APR 13 199