HomeMy WebLinkAbout2008 04 28 Awards And Presentations 300 Bond Insurance Market Presentation from Michael Williams, Bond Counsel, Akerman SenterfittCOMMISSION AGENDA
Presentations & ~ X
Awards
ITEM 300
Apri128, 2008 ~ ~,
Regular Meeting ,
Mgr. / Dept.
Authorization
REQUEST: The Finance Department wishes to update the Mayor and Commission on
events occurring in the Bond Insurance Market with a presentation from
Michael Williams, Bond Counsel, of Akerman Senterfitt.
PURPOSE: The Finance Department wishes to update the Mayor and Commission on
events occurring in the Bond Insurance Market as it relates to the City's
bonds.
ATTACHMENTS:
Letter from Michael Williams, Bond Counsel, of Akerman Senterfitt
COMMISSION ACTION:
Senterfitt
ATTORNEYS AT LAW
Fort Lauderdale 420 South Orange Avenue
Jacksonville Suite 1200
Los Angeles Orlando, Florida 32801-4904
Madison
Miami Post Office Box 231 mai!
New York Orlando, Florida 32802-0231
Orlando www.akerman.com
Tallahassee
Tampa 407 423 4000 (e! 407 843 6610 jax
Tysons Comer
Washington, IBC
West Palm Beach
Michael D. Williams
407 419 8439
mi ke.williams(u~akerman.com
April 21, 2008
VIA FEDERAL EXPRESS
Ms. Michelle Greco, Finance Director
City of Winter Springs
1126 East SR 434
Winter Springs, FL 32708
Re: City of Winter Springs Material Events
Dear Michelle:
You and I have been working together over approximately the last two months to provide
material events notices in accordance with Securities and Exchange Commission Rule 15c2-12
and the City's continuing disclosure certificates to notify bondholders of the rating downgrades
associated with Financial Guaranty Insurance Company ("FGIC"), AMBAC Assurance
Corporation ("AMBAC") and MBIA Insurance Corporation ("MBIA"). These notices have
related to the City's Improvement Refunding Revenue Bonds, Series 1999 and Improvement
Refunding Revenue Bonds, Series 2003, both insured by AMBAC, the City's Water and Sewer
Refunding Revenue Bonds, Series 2000 insured by FGIC and the City's Limited General
Obligation Bonds, Series 2002 and Water and Sewer Refunding Revenue Bonds, Series 2001
and Series 2002 issued by MBIA. Our records indicate and it is my understanding based on
discussions with you that these are the only issues the City has outstanding that are insured by
these bond insurers.
As you know these rating downgrades have in certain cases required governmental issuers to
take actions in addition to filing material events notices. In many cases where FGIC not only
insured the transaction but provided a surety bond for deposit to the reserve account, many
governmental issuers are being required to replace such surety bond with cash. Our records
indicate, and you have confirmed, that the reserve account for the 2000 Water and Sewer
Refunding Revenue Bonds is cash funded. Regarding the Bonds insured by AMBAC and MBIA
{017.79951;2 }
Ms. Michelle Greco
Apri121, 2008
Page 2
the reserve account for the 2002 Water and Sewer Refunding Revenue Bonds is cash funded.
Additionally, the 2002 Limited General Obligation Bonds do not require a cash reserve as those
bonds are secured by not to exceed one quarter of one mill on all taxable property within the
City. I have reviewed the surety bond or similarly titled document and the guaranty agreement
or similarly titled document between the City and AMBAC or MBIA, as applicable, for the
fallowing bonds:
(1) AMBAC insured bonds also containing a surety bond:
a. 1999 Improvement Refunding Revenue Bonds
b. 2003 Improvement Refunding Revenue Bonds
(2) MBIA insured bonds also containing a surety bond:
a. 2001 Water and Sewer Refunding Revenue Bonds
M:y review of such documents indicates the City is not required to take any action in connection
with any of these 6 bond issues other than the previously filed Material Event Notices.
Please let me know if I can be of any further assistance at this time.
Very truly yours,
AKERMAN SE/N'TERFITT
.L/
ichael D. Williams
MDW/dl
{01279951;2)