Resolution 068-1983
,,"
RESOLUTION NO. 068 -1983
A RESOLUTION APPROVING THE APPOINTMENT OF
WILLIAM R. HOUGH & CO. AS INVESTMENT BANKERS
FOR MONROE COUNTY FOR THE PURPOSE OF ARRANGING
REFUNDING OF BOTH THE MONROE COUNTY MUNICIPAL
SERVICE DISTRICT BOND ISSUE, SERIES 1980, AND
THE MONROE COUNTY IMPROVEMENT REVENUE BONDS
(COUNTY LIBRARY - MARATHON BRANCH), SERIES 1981.
WHEREAS, it has come to the attention of the County Commission
of Monroe County that the Municipal Bond Market is favorable to the
refinancing of issues and that by doing so a substantial inter(dt
savings can be made on existing bond issues, and
WHEREAS, it is the desire of the 110nroe County Commissioners to
save, if possible, as much money for the people of Monroe County
during the course of the payment of said bonds in retiring the same,
and
WHEREAS, William R. Hough & Co. should be selected as investment
bankers for the purpose of exploring and bringing to the County
Commission of Monroe County any proposal in regard to the refinancing
of the issues described in the above caption, now, therefore,
BE IT RESOLVED BY THE MAYOR AND BOARD OF COUNTY COMMISSION OF
MONROE COUNTY, that:
1. William R. Hough & Co. is hereby designated as investment
bankers for said County in the exploration and determination of
refinancing the Monroe County Municipal Service District Improvement
Bond Issue, Series 1980 and the Monroe County Improvement Revenue
Bonds (Marathon Branch Library) Series 1981 and report back to the
Commission as expeditiously as possible any and all proposals deemed
by the aforesaid investment bankers as being feasible in this respect.
2. That attached hereto, dated February 24 and March 7, 1983,
are communications from William R. Hough & Co. which set forth the
understanding between the County and William R. Hough & Co. in this
attempt to refinance the aforesaid bond issues.
3. That in the event a proposal is acceptable to the County
for said refinancing, the parties heretorwill then enter into a
formal agreement regarding the same with the aforesaid investment
bankers.
PASSED AND ADOPTED by the Board of County Commissioners of
Monroe County at a regular meeting held on the 18th day of March, 1983.
(SEAL)
Attest: RALPH \v. \~lnrrJ ClER!{
~~"T~\'e~' e~.~.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
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BY
AS TO FORM
GAL m;FFlCIEN='lJ4~
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A___.~ <._,,,,
Willi r>i1 H. Houoh & Co. .
THE FIRST AMERICAN BUILDING - JOE B.WISE
VICE PRESIDENT
SUITE 306 •
701 U.S. HIGHWAY ONE ANTHONY C.SOVIERO
VICE PRESIDENT
POST OFFICE BOX 14095
JUDY M.ROULIS
NORTH PALM BEACH, FLORIDA 33408
REPRESENTATIVE
(305)848-8111 February 24, 1983
Honorable Mayor and Commissioners .
Monroe County, Florida
Key West, FL 33040
Attn: Mr. Charles P. Aguero, Manager •
Monroe County Municipal Service District
Wing II-B, Public Service Building
Key West, FL 33040
Dear Ladies and Gentlemen: •
-
Since the Municipal Service District sold $8,000,000 of Improvement
Bonds, Series 1980, in April of 1981, interest rates have fluctuated,
first to higher rates , and more recently to lower levels.
At the present level of rates for tax exempt securities we have
determined that there is an opportunity to refinance the above issue,
without increasing the indebtedness of the District, which will produce
savings in debt service (principal and interest) on this issue amounting
to approximately $25,000 annually. The total. savings is estimated at
approximately $650,000 through the life of the issue, ending in 2011,
based upon the level annual savings. There are other refunding alternatives
that we have structured which will produce variable total savings , both
greater and lesser than level savings, subject to the District' s needs.
The studies which we have prepared for this 'issue are based upon
•present Internal Revenue Code Regulations which permit the partial recovery
of issuance costs. The present opportunity could change, subject to
legislation which is rumored to be under consideration by certain members
of Congress and the Treasury Department.
We would therefore recommend that the County and the District move
without delay to authorize William R. Hough & Co. , to prepare and present
to the Commission the options presently apparent. William R. Hough & Co. ,
would be acting for the District in the• role of Investment Banker, at no
fee, our compensation to be derived from the underwriting spread, if
earned, contingent upon the financing being consumated, and closed. This
is the same arrangement under which we served the District on the Series
1980 Bonds, and does not obligate the District to issue bonds unless our
proposal is deemed satisfactory and accepted.
S,a 11111,11i, e j
FEB 1 23 1933 '
Fi
�'` 1 "' STATE. COUNTY AND MUNICIPAL BONDS
i qfl 1 :_a ,
WilliSm R. Bol1"gh & (0.
, '.
Honorable Mayor and Commissioners
Monroe County, Flori da
February 24, 1983
Page Two
As soon as we have been authorized to proceed, we will commence
immediately with the preparation of the financing alternatives for
presentation to you, and if acceptable, will proceed with the necessary
steps to bring the refunding to fruition.
We would appreciate an early response to our recommendation to
serve the District, in the interest of both parties.
Please do not hesitate to call the undersigned if you have any
ques ti ons.
Respectfully,
W~AM R. HOUGH & CO.
.J4?- P .ttJja
;/ Joe B. Wi se
l/Vice President & Resident Manager
JBW/dg
cc: Kermit H. Lewin
Lucien C. Proby, Esquire
ft •
•. .,
•
William H. HouQh & Co.
THE FIRST AMERICAN BUILDING JOE B.WISE
SUITE 306• VICE PRESIDENT
701 U.S. HIGHWAY ONE ANTHONY C.SOVIERO
VICE PRESIDENT
POST OFFICE BOX 14095 •
NORTH PALM BEACH,FLORIDA 33408 JUDY M.ROULIS
February 24, 1983 REPRESENTATIVE
(305)848-8111
Honorable Mayor and Commissioners
Monroe County, Florida
Attn: Mr. Kermit H. Lewin , County Administrator
P. O. Box 1680
Key West, FL 33040
Dear Ladies and Gentlemen:
Referencing our letter of this date directed to the Monroe County
Municipal Service District, we call your attention to a like opportunity
to refinance the .County's $1 ,855,000 Improvement Revenue Bonds, (County
Library), Series 1981, at .a savings to the County in debt services using
the same scenario as 'that suggested for the Municipal Service District.
It would be appropriate, in our opinion, to authorize William R.
Hough & Co. , to proceed with refunding alternatives for this issue as
well as that of the M.S. D. If the authorization could be approved,
simultaneous with approval. for us to serve the District, we can proceed
without delay on both issues and save the Commission and staff a good
deal of time, and probably some issuance expenses, by simultaneously
dealing with financing plans,, documents and legal work.
Both issues are presently rated "AAA" by Standard & Poor's by
virtue of being insured, the. District Bonds by MBIA and the County Bonds
by AMBAC. You may presume that both refunding issues will be likewise
insured and rated. .
•
Again, we respectfully recommend an early authorization so that the
County and the M.S. D. may take advantage of the present favorable level
of interest rates and the current status of regulations.
Please feel free to call the undersigned with any questions.
• Respectfully,
WILLIAM R. HOUGH & CO.
- G'v
(Joe B. Wise
ice President & Resident Manager
JBW/dg
cc: Lucien C. Proby, Esquire
STATE. COUNTY AND MUNICIPAL BONDS
•
Ulilli� I. Houah & Co.
THE FIRST AMERICAN BUILDING JOE B.WISE
SUITE 306 VICE PRESIDENT
701 U.S. HIGHWAY ONE ANTHONY C.SOVIERO
VICE PRESIDENT
POST OFFICE BOX 14095
NORTH PALM BEACH,FLORIDA 33408 JUDY M.ROULIS
REPRESENTATIVE
(305)848.8111
March 7, 1983
Honorable Mayor and
County Commissioners
Monroe County
Key West, Florida
Attention: Lucien C. Proby, Jr. , Esq. .
County Attorney
Dear Ladies and Gentlemen:
Referencing our letters of February 24, 1983 regarding
the refunding of both the $8, 000, 000 Monroe County Municipal
Service District, Improvement Bonds, Series 1980 and the
$1, 855, 000 Monroe County Improvement Revenue Bonds (County
Library) , Series 1981 for the purpose of providing annual
debt service savings for both the Municipal Service District
and the County issue, . we herewith request official author-
ization to proceed immediately as Investment Bankers to
provide for the refunding of these two issues.
Each issue must be treated separately, but our work
product, time schedules, purchase proposals and marketing
could be accomplished in concert, or nearly in concert,
saving valuable time and, most likely, some issuance expenses
' and fees.
The refunding "window" is open, both from a market and
a regulatory standpoint, and we would urge that the Municipal
Service District and the County take advantage of the current
favorable conditions for these financings.
As Investment Bankers, there will be no fee nor costs
incurred for our financial services in preparing the
financing plans and proposals; our compensation will be
realized from the underwriting spread, if earned. The
Municipal Service District and the County are under no obli-
gation to accept our proposals, and ample evidence of current
offerings and issues will be presented for the Commissioners '
scrutiny, as in the past.
STATE, COUNTY AND MUNICIPAL BONDS
U!iHiiim Il.Houlth & (0_
Monroe County, Florida
March 7, 1983
Page Two
All issuance costs, as well as the cost of computer
calculations relative to the structuring and verification
of the refunding escrow will be borne by the issuers,
payable from bond proceeds.
We hope that this authorization .to proceed on both issues
will be approved at the March 18th meeting of the Commission
so that our efforts can be accelerated immediately. We have,
voluntarily, prepared preliminary studies confirming that
there is a savings by refunding.
Your early response will be appreciated, and we look
forward to continuing to serve the County of Monroe, Florida.
Sincerely,
WILLIAM R. HOUGH & CO.
~t ;3 . LLLUc. -d~LV
Joe B. Wise
Vice President
JBWjjmr
cc: Charles P. Aguero
Kermit H. Lewin