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Finance Committee Minutes 08/11/2020 Final COLLIER COUNTY FINANCE COMMITTEE MEETING MINUTES August 11, 2020, 1:00 P.M. Board members in attendance: Mark Isackson, Corporate Financial Operations OMB; Crystal Kinzel, Clerk of the Circuit Court and Comptroller; Joe Bellone, Director of Operations Support-Public Utilities; Gene Shue-Growth Management Operations Support Director. Other attendees: Derek Johnssen-Clerk of Courts Finance Director; Jeff Klatzkow-County Attorney; Laura Zautcke - Senior Budget Analyst OMB; Ed Finn - Senior Budget Analyst OMB; Jim Gibson. Present by phone: Sergio Masvidal from the PFM Group; Steve Miller from Nabors, Giblin & Nickerson; Duane Draper from Bryant Miller Olive Law, Miller; Alecia Ingram from Bryant Miller Olive Law ; Amy Patterson - Director, Capital Project Planning, Impact Fees and Program Management Division. 1. Call to Order: Mark Isackson called the meeting to order at 1:00 p.m. 2. Approval of Agenda: Meeting noticed August 4, 2020. Mark Isackson made motion to approve the agenda, second by Joe Bellone. Unanimously approved. 3. Approval of Minutes from June 19, 2019 meeting: With edits offered by Derek Johnssen, the minutes were approved unanimously after motion and seconded by Mark Isackson and Crystal Kinzel. 4. Review and Discussion of Cover Memo on Financing New and Replacement Capital Infrastructure: Mark Isackson reviewed the cover memo indicating that the proposed financing plan has three scenarios; a. Base case (scenario one) includes the purchase of two strategic properties – $10M for purchase of the Hussey property which the Board has already approved and $15M for acquiring the Camp Keais property, plus paying off the existing $10M commercial paper (CP) variable rate loan used to purchase the sports complex property. Structure to include a duration of no longer than 25 years with a taxable component of $25M for the property acquisition and a tax-exempt component for paying off the CP loan. b. Base case plus tax exempt financing for stormwater and parks (scenario two) - $30 million is recommended to initiate necessary improvements to the storm-water system and $20 million is suggested to replace current pump systems at County pool facilities including the sun and fun water park. Financing is structured as tax exempt with a duration of no longer than 20 years for stormwater and 10 years for the park’s aquatics pump replacement. c. Scenario three includes a and b above plus a $30M taxable component for stormwater infrastructure, parks, general facility improvements taking advantage of the current low interest rate environment and allowing flexibility to direct funding as needed without spend down constraints imposed as part of tax-exempt financing. Final 5. Special Obligation Revenue Bonds, Series 2020A and Taxable Series 2020B: Financing package as recommended totals $115M, the components of which are $60M tax exempt and $55M taxable. After discussion by Committee members including the County’s financial advisor, bond counsel and disclosure counsel, strong sentiment existed for eliminating the $30M taxable component for infrastructure improvements as part of scenario 3 and restructuring the financing to tax exempt in order to achieve the lowest cost of financing provided that projects can be identified and completed within tax exempt spend down window. Mark Isackson suggested that further consideration be given to a revised financing structure that would include $90M in tax exempt financing for all infrastructure improvements recommended plus the CP take out and $25M in taxable for the property acquisition. The committee would reconvene in a few weeks prior to the Board of County Commissioners September 22nd meeting to discuss the matter further and make a final recommendation. 6. Other Business: Committee members heard a report from Duane Draper covering Continuing Disclosure Training. 7. Public Comment: No Public Comment 8. Adjourn: Meeting adjourned at 1:55 p.m.