Series Resolution of the Board of County Commissioners of Pasco County, Florida, Supplementing Resolution No. 20-221; Authorizing the Issuance of Not to Exceed $90,000,000.00 Aggregate Principal Amount of Water and Sewer Refunding Revenue Bonds, Series 2024, in One or More Series, of the County to Finance the Cost of the Current Refunding of All or a Portion of the Water and Sewer Refunding Revenue Bonds, Series 2014A and Water and Sewer Improvement Revenue Bonds, Series 2014B, Appointing the Bond Registrar and Paying Agent and Approving the Form of and Authorizing the Execution and Delivery of a Paying Agent and Bond Registrar Agreement; Appointing an Escrow Holder and Approving the Form of and Authorizing the Execution and Delivery of an Escrow Deposit Agreement; Making Certain Covenants and Agreements in Connection Therewith; Providing for Severability; and Providing for an Effective Date. Authorizing Certain Officials of the County to Execute Any Document or to Take Any Actions Required to Offer the Bonds at Negotiated Sale and in Connection with the Issuance of Said Bonds; Award of Bid No. RFQP-LK-25-010 – BofA Securities, Inc., As Primary, and Raymond James & Associates, Inc. as Co-Manager, for Banking/Underwriting Services – Water and Sewer Revenue Refunding Bonds, Series 2024 – in the Total Not to Exceed Amount of $90,000,000.00 – No Funding Required

1:46:10Yeah. I mean excuse me, R fifty three. Excuse me.

1:46:15All right. Good morning everybody. Justin Grant, Director of Public Infrastructure, Fiscal and Business Administration. So I know we've got a uh a large group of folks here with the uh Time's starting at eleven forty five, so I'll go as quickly as I can. So I have to read the full title into um into record here and I will do that. It is not pictured on the screen, but we will read it. PIFPA twenty five zero seventy-seven is a series resolution of the Board of County Commissioners of Pasco County, Florida, supplementing resolution number twenty-two two one authorizing the aut uh issuance of not

1:46:45to exceed ninety million dollars. I agree with principal amount of the water and sewer refund. Revenue bond series 2024 in one or more series of the county to finance the cost of current refunding of all or a portion of the water and sewer refunding revenue bonds series 2014 A and series. Series 2014 A Water and sewer improvement bonds in series twenty fourteen B, appointing the bond registrar and paying agent, and approving the form and authorizing the execution and delivery of paying agent and bond registrar agreement. appointing an escrow holder

1:47:15and approving the form and authorizing the execution and delivery of an escrow deposit agreement. Making certain covenants and agreements in connection therewith, providing severability and providing for an effective date, authorizing certain officials of the county to execute any document or to take any actions required to offer the bonds at a negotiated sale and in connection with the issuance of said bonds. Award bid number RFQPLK two five-010, BO B of A Securities Incorporated for Banking. Underwriting services, water and sewer refunding

1:47:46bond series twenty twenty four in the total not to exceed amount of ninety million dollars. So try to save your eyes here from putting that on the screen. But I'll go through these slides pretty quickly and leave time at the end if there's any questions. So back in uh September twenty fourteen And Board of County Commissioners approved resolution 2014, resolution 14284. This was an issue in the water sewer bonds 2014A and 2014 B series. This was a combination of new money and a refunding at the time. The long and short of what we're doing today is we're doing

1:48:16a refunding series. There is no new money in this deal, and so we have a call provision in that deal that allows us to come up here and do that when the financial situation makes sense for us to do so. So and right now preliminary analysis shows that it does. All right, so we ultimately ultimately decided to go a negotiated sale route, right? And so this uh this slide actually should state a negotiated sale process, right? Because there is not a pricing, uh yeah, that pricing will happen actually in about 30 days from now when we go through this process here. So here's a quick timeline, right back in Octo uh earlier in October 22nd. Uh,

1:48:46we did approve, this board approved the piggyback agreement uh to um to get investment banking services contract that's there. So the County utilizes. And so there's an underwriter pool which allows us to go through these processes a little bit quicker and in this case save us more money. And so ultimately then uh on that same day it was approved, we went through and did the bid process uh with along with our our partner here, PFM, as our financial advisor. And then ultimately on October 29th, we did select Raymond James, uh I'm sorry, Bank of America Securities as the primary

1:49:16and Raymond James as our secondary for this series. Okay, so potential savings, this is where we get to save money, and I will notate here real quickly is that uh the market moves around quite a bit. We did have some major things happen within the country, right? We just had a presidential election, and so as a result, treasury yields and things like that move around quite a bit. The bomb will not price for another 30 days, so there's estimates and things like that here. Uh, but but bottom line, uh, we expect to save you know north of five percent on M B D. basis uh on this deal. So it's it's a good

1:49:47deal and we're excited to get it done. So ultimately, there's a series of actions here we need to take to allow this to move forward. And so I'll read through these here pretty quickly. We need to approve the series resolution. This does delegate the chairman the authority to accept the offer of the underwriters to purchase those bonds with those two conditions that are named. And I'm not going to read through those in the interest of time right here, A and B on the slides pictured here. Also, we need to approve the award of the bid. Right, we named that one earlier and that is going to be Bank of America as our lead

1:50:17and Raymond James as the co manager. This is a deal that's not to exceed uh ninety million dollars. And then finally there's a delegation of authority uh inside of this resolution uh that delegates the authority to the uh chairman to allow us to go through the issuance of the box. So that is the quickest I can make ninety million dollars sound while going through and getting All of our legal things done. So does the board have any questions?

1:50:41Mr. Chairman Mariano So in light of the president elec election right before that they dropped their Fed rate down point two five. Do you think these rate rates may drop further? And we would be better off waiting to see if it does trick down for the

1:50:57and Brent Wilder is here from PFM and I anticipated a little bit of that and I'll let them give kind of a quick little insight.

1:51:05Uh flexibility, PFM is of course watching that for us. So Brett, I'll turn it to you.

1:51:11Good morning, Brent Wilder, PFM financial advisors. Pleasure to see you again. Um we do not pret predict where rates uh will go. We do know that we have gotten the Fed uh twenty-five basis point reduction. We think they are done for the near term, so for the period of time between now and pricing, we would not expect anything further, absent some um unforeseen international event that might uh prompt them to do something. Else. Overall the markets have settled. Uh rates went up uh initially after the election results, so were concerns

1:51:41of inflationary pressures by those that were making such determinations. We have seen though in the week that has passed, things seem to have come back down. Net net um the pre-election um analysis we are running versus the uh numbers we're running today, it's all 10 basis points differential on. this particular financing. So did that address your question, sir, or no? So you think they're pretty

1:52:05stable where they're gonna be, you know, they're gonna drop down.

1:52:08We're not expecting anything in the in the near term to suggest a further reduction in the rates that would affect this, keeping in mind the Fed only impacts overnight rates when we're going out fifteen plus years. Uh the markets make those own determinations uh separate from the Fed.

1:52:23What w what were the rates when four years ago? Yeah.

1:52:28lower than they are today.

1:52:30So if the new president coming in was the presidents from before had lower rates, what makes you think they would be trending to go down as opposed to up with an

1:52:38easy

1:52:38one?

1:52:38We we do expect overall they will continue to trend down. They they've peaked uh this past summer in our estimation. The Fed has so far followed through with what um their policy decisions that they will continue a cycle of easing. Um we've seen them follow through on that now. Um then there's debate. over whether they'll continue to do that or if this the new uh levels are to the new normal. We do expect short term rates to continue to come down in the next year, but again, longer term rates were not as um optimistic in the near term.

1:53:12I I just think the previous president Who just got re-elected had low rates. The president before him had low rates. This one had a different philosophy about it by slowing the economy down to raise the interest rates up. I just I just get a feeling it's gonna keep on dropping down as it did before and his his different way to run the economy.

1:53:33I very much hope you're correct.

1:53:35But you'll continue to pay the interest rates that we're locked in on now if we don't refinance. That's that's the

1:53:43Yeah.

1:53:46The the game the not the game, but the that's the that's the calculated risk you've gotta take is this refinancing is designed to save the board money. it's existing money, the it's existing debt. Um and if you wait for rates to go down, you're still paying interest on the money we've already got outstanding.

1:54:07Yeah. If in fact that maybe a year or two from now we find the rates have dropped down maybe a full uh percent, is there a possibility for us to go back and look at it to refinance again, save more money?

1:54:18Um the way that we are currently envisioning there would be a ten-year call protection period for investors similar to the bonds that are out there today. So Um to County Attorney's point, we are past the call date now, so every day that we go past the opportunity to refinance, those are savings that we cannot get back. So if you fast forward, rates would have to draw precipitously lower to make up for the savings we would be foregoing between today and a year from now.

1:54:45Okay. Mr. Paval?

1:54:47And I just want to add, we have a large debt portfolio, so in the averages When debt comes up for these call provisions and interest rates two or three years from now are are substantially lower, we'll see savings on on those debt issuances as well. So, you know, across our portfolio it it works. I would I would recommend we we move forward with it.

1:55:06Entertain a motion. Approval? Second. We got a motion and second. All those in favor say aye. Aye. Aye. Motion passed 5-0. We'll now move to um R fifty-six.