Item R7
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
ADD ON
Meeting Date: June 21.2006
Division: Budget & Finance
Bulk Item: Yes No ~
Department: Office of Management & Budget
Staff Contact Person: Salvatore Zappulla
AGENDA ITEM WORDING: Approval of the costs of issuance of the Key West International Airport
Revenue Bonds Series ("Series 2006 Bonds"). The Series 2006 Bonds are subject to Alternative Minimum
Tax. ("AMY') AMT bond issues are a subject to a 2 percent cost of issuance limitation that applies to all
delivery date expenses which are estimated at $312,555 plus the Underwriters Discount which is estimated at
$50,306 for a total of $362,861. $33,000,000.00 x 2% = $660,000 maximum.
The Letter of credit fee is estimated at $248,989 (or 81 basis points) is not included in this calculation, but is
shown here for completeness. (See Attached). The only other cost of issuance is cost of the rate cap which will
be paid for out of Airport Operations estimated at $24,000, and the quarterly remarketing fee of 8 basis points
payable in arrears.
ITEM BACKGROUND:
There are issuance costs associated with Debt instruments, the majority of which come out of the proceeds of
the Bonds.
PREVIOUS RELEVANT BOCC ACTION:
On May 16,2006 The Board of County Commissioners executed a Commitment Letter from the Bank of
America for a direct pay letter of credit not to exceed $35,402,740.00 of Principal and Interest Combined.
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS:
Approval
TOTAL COST:
Est $612,000
BUDGETED: Yes ~ No _N/A
COST TO COUNTY: Est $612,000
SOURCE OF FUNDS:
Bond Proceeds
REVENUE PRODUCING: Yes No N/A ~NT:ER MONTH Year
APPROVED BY:County Atty. ~OMB/purchasin~ Risk Management NI A
DIVISIONDIRECfORAPPROVAL, ~~pf!fL
/' Salvatore . Za
DOCUMENTATION:
Included
x
Not Required_
DISPOSITION:
AGENDA ITEM #
e--;
RECEIVED\
ByJUN ;~~OO~_J
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=PFM
~ The PFM Group
PU!J!"; ['!lldriC f)l r~1an,'';1(:,lile'1~, t'1;
f'i'M A".;;)! M:;:',-!~lf:n'"".n' LL(:
FHv;l,,;V'C,>Jf:-
13350 Metro Parkway
Suite 302
Fort Myers. Ft
339124796
239-939-3009
239-939.1220 fax
WNW.pfm.com
June 16, 2006
Memorandum
To: Sa! Zappulla
Monroe County, Florida
From: Hal Canary
Kelly Ryman
Lauren Shdton
Public Financial Management, Inc.
Re: Monroe County, Florida
Key West International Airport Revenue Bonds, Series 2006
Monroe County, Florida (the "County") asked Public Financial Management, Inc. ("PFM") to
compile all costs of issuance related to the County's Key West International Airport Revenue Bonds,
Series 2006 ("Series 2006 Bonds"). The Series 2006 Bonds are subject to Alternative Minimum Tax
("AMY'). AMT bond issues are subject to a 2 percenr cost of issuance limitation that applies to all
delivery date expenses, including underwriter's discount. 'the cost of issuance and underwriter
discount cannot exceed 2 percent of the face value of the bond issue. Bond insurance premiums and
letter of credi e excluded from this limitation. The Letter of Credit fee is 81 basis points,
estimated $248,989. @
The following table details the costs of issuance:
:w........:... :
';;.:'" ,.~ -,-~, -.~ .... - - '"
,,::.,.-~_-iiI:'<~'"' .,"
Bond Counsd Fee
Bond Counsel Expenses
Disclosure Counsel Fee
Financial Advisor Fee
Financial Advisor Expenses
Printing and Shipping
Paying Agent
Tender Agent
Moody's Rating(l)
Standard and Poor's Rating(l)
Miscellaneous
"}~~1W~~~~\;)t
,..~~t,*l\iii~;t~,'it<f:(<\i;i(1*:~il'i";ii},,~%!i;Jm~,~Ji*i&,
Total
$90,000
5,000
72,000
80,000
4,000
4,500
200
1,855
20,000
20,000
15000
G!12,SsD @
(I) r~stim;ltcd I:('e. Once ratings have been confirmed, PFM willllpd3ted th(~ Fcc.
1#
Sat Zappulla
June Hi. 2006
Page 2
The foUowing table details the estimated underwriter discount;
i
Avetage Takedown
Expenses
Underwriterls Counsel
Cusip
DTC Chatges
Municipal Syndicate Services
Day Loan
BMA Special Assessment
Total
1.00
0.01
0.49
0.00
0.01
0.08
0.01
0.03
$1.65
$30,385.00
1,000.00
15,000.00
135.00
285.00
2,378.88
211.01
911.55
C150,306AD (i)
(1) Elltimated based on current licalc.
The estimated cost of issuance and underwriter's discount total $362,861, which is lowet than the 2
percent limit.
The Series 2006 Bonds will also be subject to a remarketing fee paid to UBS Securities, the
Underwriter, of 8 basis points, paid quarterly in arrears. The remarketing fee is not subject to the 2
percent limitation.
Please contact PFM if you have any questions.
CD
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Cosl-o F .::p,.s~"ce
Le++er of (}"e.dif-
DISCot.tlrl.J- to 50, &:N.4'-f
312, 555 .CO
fee %1 bps 2.4~, q8<t. 8i"
$(0111 ~51.52.