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Home My WebLink About2001 07 09 Regular H Expansion of Central Winds Park July 9,2001 Regular Item "H" COMMISSION AGENDA ITEM H CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X 07/09/01 Meeting MGR. (LJ /DEPT Authorization REQUEST: City Manager requesting the City Commission to approve a Resolution ordering a bond referendum on the question of acquiring and improving the Parker Property for expansion of Central Winds Park through the use of general obligation bond proceeds. PURPOSE: This Agenda item is needed for the Commission to approve the ballot question for approval of the referendum question for the proposed referendum on acquisition of the Parker Property for expansion of Central Winds Park. CONSIDERATION: The Commission desires to acquire the Parker Property for expansion of Central Winds Park and has stated that they desire the matter to go to referendum if the cost of the property is over $ 2.5 million dollars. The Parker Brothers last offer was $ 2, 950,000.00. Chapter 100, Florida Statutes authorizes municipalities to issue general obligation bonds. The Seminole County Supervisor of Elections is requiring all ballot questions to be filed with her office no later than July 20, 2001. The Commission needs to establish a final offer to the Parker Brothers and approve the ballot question. July 5, 2001 Regular Item "H" The millage levy required for the acquisition of the property is as follows: $2,700,000 _ mills $2,800,000 _ mills $2,900,000 _ mills $3,000,000 _ mills $3,100,000 _ mills $3,200,000 _ mills $3,300,000 _ mills $3,400,000 _ mills $3,500,000 _ mills FUNDING: Special Ad Valorem property tax levy. RECOMMENDATION: It is recommended that the City Commission do the following: 1.) Approve a fInal offer to the Parker Brothers. 2.) Approve the following ballot question: Approval of Bonds for the Expansion of Central Winds Park Shall the qualifIed voters of the City of Winter Springs, Florida acquire a levy of not more than _ mills of Ad Valorem property taxes for the issuance of not more than $ in 30 year General Obligation Bonds at an interest rate not to exceed that provided by law, to acquire and improve approximately 27 acres of land including soccer, football, baseball and other recreation facilities adjacent to Central Winds Park. Yes for Bonds No Against Bonds ATTACHMENTS: 1.) Resolution (Will be available Fridcry.) 2.) Bond Tables (Will be available Fridcry.) COMMISSION ACTION: ~_. MEMORANDUM TO: Mayor and Commission ~ \ \ 'J\ Ronald W. McLemore, City Managerk\'\)\ FROM: DATE: July 6, 2001 SUBJ: Regular Agenda Item "H" Please find attached bond information relative to this agenda item prepared by our financial advisor. Using the attached schedule, if the City paid $2,950,000 for the land and raised another $250,000 for development, the $250,000 would raise an additional $250,000 for a total of $500,000 for development of the park. $2,950,000 + $250,000 $3,200,000 + $250,000 $3,450,000 Bonds for acquisition Bonds for development Total Bonds State Grant Total Funds Cost To Residents Project Bonds Par Amount Bonds Debt Service Millage Millage 1.2 x Coverage $3,200,000 $3,345,000 $247,000 0.21 0.25 Homeowner cost would be $21 per year for a house assessed at $100,000. /hp \\CITYHA LL _ PDC\J PALLA DINO\Docs\ Word\Mcll1os\Ju lyO J \Bond lnforrnation.doc . 07/fJ6/01 FRI 10:J7 FAX .107 6.\8 1J2J PHI @002 ~lJi'l: 7~Q 20 1 ~ou1h OranllQ Avel\ue O~" III.) 1'1.. 32H.I..H70 40764e-2200 407 648-1323 fox www.~rm.com ---=- - ~~M ~ Public Financial Management -- - f ,f11)(lr).111}nd Inves [meN Ad\l'isor& July S. 2001 Memoranduln To: Ronald McLemore Cc: lvfike \VtluafT1S From: David Moore Re: ProspecQve General Obligation Finmcing PurSU:lnl (Q your requcst we prepared the general obligation bond nL-W money scen:u-ios summarized bclaw. There are !:\.Vo fac(Qrs (Q keep in mind when structming the referendum question. First:, the referendum 'l.vill be Dcld to late for the millage ro be assessed on the: pr(,'pcrty t::Lx bills that go out this f:ill. Therefore, the City 'l.1.!'ill either need to C:lpitalize intere.st p=<ymcnts through July 1,2002 or delay the sa.le and closing of (he bonds until May of 2002. 1ne second issue to keep in mind is debt service coverage. J f the refcn::ndum is for "limited ad valorem bonds", which means the referendum states a specific ma):jmum millage race (Ie. 0.2 or 0.3 mills); the maximum millage should provide approximately 120% debt ~er:vice coverage. Cower coverage l<.:ve:ls are possible bur (he cost of bond insurance will increase. We recently completed a limited geneul ob]jg:ttian financing for. a larger county and che bond lnSUf2.I1Ce companies expected coverage of 120% (1.2:>:) maximum annual debt service. \Xlhilc the City would only levy millag~ in an . :l.mount necessary to P:lY debt service each YCJ!, the referendum nc:ed~ tlJ aut.hOr17.e a millage rate du( generates sufficient coverage. If tbe referendum question is for a/1 l.lnlimitcd general obligation bond, debt service coverage is not an i~sue. Financing Structures Wc prcpared two str.uctun':s (capitaliL:ecl inreresr and no capitalized iorercsc) for project sizes ranging from $2.7 million to $3.2 million. In each case we included an estimate for cost:; of issuance, bond insurance and underwritc;n; discount to obt:lin 211 estim:HeJ par amounL of bonds. Each financing structure is summa.rii:ed on the following page. FRI 10:37 FAX ~07 6~8 1323 PFM f4jOOJ n."naJcJ McJ.r.mo~c JOlly S. 2001 1'>gc 2 General Ob~tion Bonds Estimated Bond Sizing A.nJount P.or Amowu of fl-fromum JI,(Jllu/,rr: R~qu.u..-d for 1.b Mi11:Jf?1' for 1.2..- Prnj"ct Pund lJund$ Annu.i/ D/S R.:qw'""J CCH"c"r:3J:'f: Cover .1f:C C.>.piulixed 2.700.000 2,955,000 216,963 0.18 2(;0,]56 0.22 Interest 2,800,000 3.065,000 214.453 0.19 269.J44 U.23 2,900,000 3,170,000 231,921 0.20 27 8riOS 0.24 3.000,000 3.275,000 2.10,093 0.20 288.112 0.24 3.100,000 3,385,000 247,800 0.21 297,3GO 0.25 3,200,000 3,491l,OOO 254.860 0.22 305.832 0.26 Del:1yed 2,700,000 2,330,000 209,353 0.18 251.224 0.21 Closing 2,600.000 2..935.000 217,221 0.16 260.665 0.22 (U,y 2002) 2,900,000 3,035,000 22.1.100 0.19 268.920 0.23 3,000,000 3,140,000 231,921 0.20 278,.305 0.24 3,100.000 3,240,000 239.575 0.20 287,490 0.24 3.200,000 3)45,000 247,200 0.21 296,G4D 0.25 T=blc A..<sessed nlue S1,151,893,317 We ran the numbers at inrerest rates slightly higher than current rates to provide some; cushion against changes in market conditions betwccn now and the bond iSSU,U1CC: dare. The millage ratt:; for a saaight general obligation bood range from 0.18 mills to 0.22 mill:; while d10se for a limited ad valorem bond rangl:: from 0.21 mills ro 0.25 mills. \'VI c will continue ro discuss structuring ideas with !vlike. and will c3.l1 you with any issues that may aose. Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Jul-10.01 2:59PM; CITY OF WINTER SPRlNGS EXPANSION OF CENTRAL WINDS PARK Shall the City purchase approximately 27 acres of land adjacl:l1t to Central Winds Park to construct soccer, football, baseball and other recreation facilities and finance the purchase and construction by issuing Bonds not exceeding $3,400,000.00, benring interest at a Iak not exceeding the maximum permitkd by law, and by levying an ad valorem ra.x not exceeding one-quarter of one mill (0.25) On all taxable property within Winter Springs for repayment of such Bonds? For Bonds Agail1St Bonds Page BiB RESOLUTION NO. 2001-30 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, CALLING A BOND REFERENDUM ON SEPTEMBER 4TH, 2001, OR SUCH OTHER DATE AS MA Y BE AUTHORIZED BY LAW, WITHIN THE CITY OF WINTER SPRINGS ON THE QUESTION OF WHETHER THE CITY OF WINTER SPRINGS SHOULD FINANCE THE COST OF ACQUIRING 27 ACRES OF LAND TO EXPAND CENTRAL WINDS PARK AND TO CONSTRUCT SOCCER, FOOTBALL, BASEBALL AND OTHER RECREATIONAL FACILITIES ON SAID LAND, BY ISSUING LIMITED AD VALOREM BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,400,000.00, TO BEAR INTEREST AT A RATE NOT TO EXCEED THE MAXIMUM RATE PERMITTED BY LAW, AND BY LEVYING AN AD VALOREM TAX NOT TO EXCEED ONE-QUARTER OF ONE MILL (0.25) ON ALL TAXABLE PROPERTY WITHIN THE CITY OF WINTER SPRINGS TO BE USED FOR THE PURPOSE OF REPAYING SUCH BONDS AND FOR THE CONSTRUCTION OF SUCH RECREATIONAL FACILITIES; PROVIDING FOR SEVERABILITY; REPEAL OF PRIOR CONFLICTING RESOLUTIONS AND OTHER ACTIONS OF THE CITY, AND AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Winter Springs hereby finds this Resolution to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS AS FOLLOWS: Section 1. AUTHORITY. This Resolution is adopted pursuant to the authority of Chapters 166, Florida Statutes and 100, Florida Statutes, and any other .applicable provision of law. Section 2. FINDINGS. It is hereby found and determined as follows: A. There is a need for recreational facilities in the City of Winter Springs; B. Acquisition and construction of recreational facilities in the City of Winter Springs, will enable the City of Winter Springs, ("City"), to expand and provide City of Winter Springs Resolution No. 2001-30 Page I of 4 recreational activities for the benefit and enjoyment of the citizens of the City and constitutes an essential public purpose; C. Issuance by the City of its limited ad valorem tax bonds, in an amount not to exceed Three Million Four Hundred Thousand Dollars payable from the proceeds of an annual ad valorem tax not to exceed one-quarter of one mill (0.25) levied on all taxable property within the City of Winter Springs is an appropriate method for financing the cost of such facilities; D. Chapter 166, Florida Statutes, and Article VII, Section 12 of the Florida Constitution, (the "ACT"), authorize the City to issue bonds upon approval by a majority of the electors residing within the City of Winter Springs and voting in a bond referendum conducted pursuant to law; E. September 4th, 2001 or such other date thereafter as may be authorized by law, is an appropriate and desirable date for the conduct of the bond referendum election; and F. All things required to be done prior to the calling of a bond referendum with the City of Winter Springs on the issuance of the proposed bonds have been done and it is now desirable to call the necessary bond referendum. Section 3. BONDS. The issuance of limited ad valorem tax bonds of the City, (the "Bonds"), in an aggregate principal amount not exceeding $3,400,000.00 in one or more series as determined by subsequent Resolution, bearing interest payable at such rate or rates not exceeding the maximum rate permitted by law, as shall be determined at the time of the sale thereof, and maturing in a manner set forth by subsequent Resolution, as may be adopted by the City Commission of the City of Winter Springs, is required for .the purposes set forth in this Resolution and such Bonds are hereby authorized, subject to elector-approval in the Bond referendum. The Bonds and the interest thereon will be payable from the proceeds of an annual ad valorem tax not to exceed one-quarter of one mill (0.25) levied on all taxable property within the City of Winter Springs. Section 4. BOND REFERENDUM. A bond referendum is hereby called and ordered to be held in the City of Winter Springs on September 4th, 2001, or such other date thereafter authorized by law, to determine whether or not the Bonds shall be authorized. Section 5. NOTICE OF BOND REFERENDUM. This Resolution shall be published twice in full as part of the Notice of the Referendum Election, together with a notice in substantially the form attached hereto as Exhibit "A" in the Orlando Sentinel, a newspaper of general circulation in the City of Winter Springs. The publication shall occur once in the fifth week and once in the third week prior to the week which includes September 4th, 2001. City of Winter Springs Resolution No. 2001-30 Page 2 of 4 Section 6. PLACES OF VOTING, INSPECTORS, CLERKS. The polls will be open at the voting places on the date of such bond referendum during the hours prescribed by law. All qualified electors residing within the City of Winter Springs shall be entitled and permitted to vote at such bond referendum on the proposition provided below. The places of voting and the inspectors and clerk for the bond referendum shall be those designed by the Supervisor of Elections of Seminole County. Section 7. OFFICIAL BALLOT. The ballots to be used in the bond referendum shall contain a statement of the description of the proposed issuances of Bonds, and shall be in substantially the following form: CITY OF WINTER SPRINGS EXPANSION OF CENTRAL WINDS PARK Shall the City purchase approximately 27 acres of land adjacent to Central Winds Park to construct soccer, football, baseball and other recreation facilities and finance the purchase and construction by issuing Bonds not exceeding $3,400,000.00, bearing interest at a rate not exceeding the maximum permitted by law, and by levying an ad valorem tax not exceeding one- quarter of one mill (0.25) on all taxable property within Winter Springs for repayment of such Bonds? For Bonds Against Bonds Section 8. PAYMENT OF REFERENDUM EXPENSES. The City Manager is hereby authorized and directed to approve the payment of lawful expenses associated with conducting the bond referendum election. Section 9. VOTER REGISTRATION BOOKS. The Supervisor of Elections for Seminole County is hereby authorized and requested to furnish to the inspectors and clerks at each place where the votes are to be cast in such bond referendum; applicable portions of the registration books or certified copies thereof showing the names of the qualified electors residing in the City of Winter Springs. Section 10. ELECTION ADMINISTRATION. The bond referendum shall be held and conducted in the manner prescribed by law and shall be as soon as practicable, be returned and canvassed in the manner prescribed by law. The result shall show the number of qualified electors who voted at such bond referendum and the number of votes cast respectively for and City of Winter Springs Resolution No. 2001-30 Page 3 of 4 against approval of the Bond~. Upon certification in the manner prescribed by law, the results shall be recorded in the minutes of the City Commission of the City of Winter Springs. Section 11. ELECTION RESULTS. If the majority of the votes cast at such a bond referendum shall be "For Bonds," the issuance of the Bonds shall be authorized and the Bonds may thereafter be issued as may be provided by the City Commission of the City of Winter Springs. Section 12. SEVERABILITY. In the event that any word, phrase, clause, sentence or paragraph hereof shall be held invalid by any court of competent jurisdiction, such holding shall not affect any other word, clause, sentence or paragraph hereof. Section 13. REPEALING CLAUSE. All Resolutions or other actions of the City which are in conflict herewith are hereby repealed to the extent of such conflict or inconsistency. Section 14. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. DONE AND ADOPTED in regular session of the City Commission of the City of Winter Springs, Florida this 9th day of July 2001. \AWl Paul P. Partyka Mayor 0- Luaces bond referendum.kj City of Winter Springs Resolution No. 2001-30 Page 4 of 4 . ' ' ,. ExmBIT "A" Resolution No. 2001-30 NOTICE OF CITY OF WINTER SPRINGS BOND REFERENDUM. Pursuant to the provision of Section 100.342, FLorida Statutes, notice is hereby given that a bond referendum election to be held on September 4, 2001, or such other date as may be authorized by law, there shall be submitted to the citizens of Winter Springs the question described in Resolution 2001-30, adopted by the City Commission of the City of Winter Springs, Florida, on the 9th day of July, 2001. The title of Resolution 2001-30 is as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, CALLING A BOND REFERENDUM ON SEPTEMBER 4TH, 2001, OR SUCH OTHER DATE AS MAYBE AUTHORIZED BY LAW, WITmN THE CITY OF WINTER SPRINGS ON THE QUESTION OF WHETHER THE CITY OF WINTER SPRINGS SHOULD FINANCE THE COST OF ACQUIRING 27 ACRES OF LAND TO EXPAND CENTRAL WINDS PARK AND TO CONSTRUCT SOCCER, FOOTBALL, BASEBALL AND OTHER RECREATIONAL FACILITIES ON SAID LAND, BY ISSUING LIMITED AD VALOREM BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $3,400,000.00, TO BEAR INTEREST AT A RATE NOT TO EXCEED THE MAXIMUM RATE PERMITIED BY LAW, AND BY LEVYING AN AD VALOREM TAX NOT TO EXCEED ONE-QUARTER OF ONE MILL (0.25) ON ALL TAXABLE PROPERTY WITmN THE CITY OF WINTER SPRINGS TO BE USED FOR THE PURPOSE OF REPAYING SUCH BONDS AND FOR THE CONSTRUCTION OF SUCH RECREATIONALFACILITIESj PROVIDING FORSEVERABILITYj REPEAL OF PRIOR CONFLICTING RESOLUTIONS AND OTHER ACTIONS OF THE CITY, AND AN EFFECTIVE DATE. The ballot caption and referendum question is as follows: CITY OF WINTER SPRINGS EXPANSION OF CENTRAL WINDS PARK Shall the City purchase approximately 27 acres ofland adjacent t~ Central Winds Park to construct soccer, football, baseball and other recreation facilities and fmance the purchase and construction by issuing Bonds not exceeding $3,400,000.00, bearing interest at a rate not exceeding the maximum permitted by law, and by levying an ad valorem tax not exceeding one-quarter of one mill (0.25) on all taxable property within Winter Springs for repayment of such Bonds? For Bonds Against Bonds exhibit a to bond referendum.kj