Finance Committee Minutes 09/20/2022 Final
Finance Committee Agenda
September 20, 2022
County Manager’s Front Conference Room
9:30 a.m.
Board Members in Attendance: Present: Ed Finn - Deputy County Manager; Derek Johnssen – Clerk of Courts
Finance Director; Amia Curry – PUD Operations Support Director; Susan Usher – Senior Budget Analyst OMB
Phone: Gene Shue – TMS Director Operations.
Other Attendees: Present: Jeff Klatzkow – County Attorney; Crystal Kinzel – Clerk of the Circuit Court;
Christopher Johnson – Interim Director Corporate Financial Operations Phone: Sergio Masvidal PFM; Steve
Miller – Nabors, Giblin & Nickerson.
Public Present - Daniel Zegarac
1. Call to order – Ed Finn called the meeting to order 9:35 a.m., September 20, 2022.
2. Approval of Agenda (meeting noticed on September 13, 2022) 5 business days before date of meeting
Derek motion to approve, Susan second, unanimous approval.
3. Approval of Minutes from July 5, 2022
Derek Recommended Adjustments
1. Item 3. - Change year from 2022 to 2021
2. Item 6. - Commercial Paper ii – Change Addition to Additional add question mark to end of
sentence.
3. Item 7i. - Change provided to provide
4. Item 7ii - Change Derrek to Derek
– Motion to approve with adjustments Amia, Second Derek, minutes and adjustments unanimously
approved.
4. Refunding candidate (the 2016 W&S bonds). Discussion of opportunities
1. Sergio
i. Market moving quickly - Increase in rates, Market Conditions increases since
September 2021. Opportunities to take advantage of short curve by investing escrow
ii. Cinderella Bond - Tax Law changes no longer allow advance refunding bonds. Issue
taxable bond until call date (90 Days Before) and convert to a tax-exempt bond
2. Jeff Questions
i. – If it doesn’t convert what is the cost?
$3.3M savings if converted or $1.3M Savings if not converted.
ii. Why wouldn’t they convert?
It is an exchange of the bond to tax exempt – all terms in the agreement
upfront – Biggest risk is tax law change
iii. Cost of transaction?
Built into the scenario
3. Crystal Question
i. Do you anticipate a tax law change? How would it impact us?
Steve: Pretty remote chance.
Final
4. Derek
i. Debt policy set at 5% net savings.
ii. FYI, everyone is working at risk pending closing.
iii. The structural change going from public offering to bank loan simplifies reporting.
5. Jeff
i. Who set the 5% policy?
Board approved debt policy
6. Ed - Threshold to explore is 5%
7. Susan - This will help impact fee funds as 75% is being paid from impact fees.
8. Ed Question
i. How many of these conversions have you seen?
Sergio - 25
Steve - Just finished one recently for St. Johns County.
9. Derek – Motion to consider opportunity at 5% net savings, Amia second, unanimously approved.
5. Commercial Paper Utilities
1. Derek –
I. Open separate line of credit for utilities – typically used for construction or bridge loan.
II. Variable rate debt but provides flexibility. Natural Hedge as interest rises with it. 262
currently expecting 75 points.
III. Can be managed and provides the ability to pay down principal.
2. Steve - Approval needs to go to board can take resolution with first draw.
3. Derek - Recommend we just get the resolution in place.
4. Sergio - Prudent strategy
5. Ed - Currently hit with inflation to the tune of $30M. Had to curtail projects. What does the
Utilities capital look like?
I. Amia - Without would have to reduce projects further.
6. Ed - 2021 Bond included operations center 15M can we reallocate?
I. Yes, as long as project is listed on the bond.
7. Consensus to move forward with utilities commercial paper to the Board as soon as possible.
6. Gas Tax Bond
1. Current bonds paid off in 2025.
2. Have an unfunded need in transportation of $200M+.
3. Capacity of $60M-$70M short term for new bonds 10 years.
a. Capacity will go up in 2025 when current bonds mature.
4. Derek - Suggests waiting for 2-3 years
5. Gene - $40M Current unfunded needs $205M over 5 years
6. Ed- Overlay plan, timing of execution of projects, budget, cash flow. Put on next agenda and
look at next meeting in 4-6 weeks.
7. Other Business –
1. Crystal - Sales tax extension?
Final
i. Jeff - Has to go on ballot.
ii. Ed - I would like to get more out the door and built first.
iii. Jeff - Millage rate is low - Strategy - Sales tax keeping the millage low and it is being split
with visitors.
2. Jeff- If it is anticipated that gas tax revenue is going to decline and maybe good to look at
franchise fee with FPL for the difference.
3. Derek – Expand meeting to address accounting issues?
i. Susan - Steve and Sergio don’t need to be involved.
ii. Ed and Derek will bring something back
4. Crystal – Would be nice to include project updates in meeting.
8. Public Comment
1. Daniel Zegarac – Appreciate the opportunity to be involved.
i. Does bond counsel work for the bank?
They are a vendor for the County.
2. Adjourn – Next Meeting – TBD
10:35 Motion to adjourn Derek, Amia Second Unanimous