SUBJECT:
MOTION Awarding the Sale of Tax and Revenue Anticipation Notes, Series 2016 to one or more purchasers and ratification and confirmation of the use of the Preliminary Official Statement and Official Statement.
RECOMMENDATION:
Adopt a motion authorizing the Mayor and City Controller to award the sale up to $230,000,000 Tax and Revenue Anticipation Notes, Series 2016 (the “Notes”) and take any other action required related to the issuance of the Notes, including ratification and confirmation of the use of the Preliminary Official Statement provided to prospective bidders in connection with the offering for sale of the Notes and approval of the distribution of the Official Statement.
SPECIFIC EXPLANATION:
On May 4, 2016, City Council passed two Ordinances No. 2016-0351 and 2016-0352 (the “Ordinances”) authorizing the issuance and sale of Tax and Revenue Anticipation Notes, Series 2016 (the “Notes”). As in prior years, the proceeds of the Notes will be used to fund General Fund operating expenditures in anticipation of the receipt of ad valorem tax revenues later in Fiscal Year 2017.
On or about June 8, 2016, a Notice of Sale and Preliminary Official Statement was made available to prospective purchasers relating to the offering of up to $230,000,000 of Notes, and requesting the delivery of the bids on June 22, 2016. The bids are received through an auction format described below that allows a broker/dealer to bid for the total principal amount of the Notes or a lesser principal amount; therefore, the “winning bid” may be awarded to more than one firm.
Electronic bids for the Notes will be received via the Internet between 8:30 a.m. – 9:00 a.m. Central Daylight Time on June 22nd, 2016; however, to ensure that the City receives the most competitive bids, if any bid becomes a leading bid within two minutes prior to the scheduled end of the bidding, then the time period for submission of bids will automatically extend by two minutes from the time such new leading bid was received to allow other bidders to participate. At the close of the bidding period, the Office of the City Controller, Finance Department, and the City’s financial advisors will verify interest rate calculations of bids received and join the City Council session to announce the results. City Council is asked to adopt a motion to award the sale to one or more purchasers based on the lowest true interest cost, ratify and confirm the use of the Preliminary Official Statement and authorize the distribution of the Official Statement. It is expected that the proceeds from the sale of the Notes will be available on Thursday, July 7, 2016.