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Introduced by the Council President at the request of the Mayor:
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ORDINANCE 2008-307
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AN ORDINANCE AUTHORIZING THE ISSUANCE OF REFUNDING
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BONDS OR OTHER DEBT RESTRUCTURE OF THE CITY’S DEBT
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PRESENTLY OUTSTANDING UNDER ORDINANCE 97-1054-E AND
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KNOWN AS CAPITAL PROJECT REVENUE BONDS, SERIES 1997-
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1, SERIES 1997-2, SERIES 1997-3 AND SERIES 2002-1;
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DELEGATING TO THE MAYOR, SUBJECT TO THE GUIDELINES
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SPECIFIED HEREIN, FULL AUTHORITY TO ACCOMPLISH THE
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SAME, INCLUDING BUT NOT LIMITED TO ENTERING INTO
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AGREEMENTS
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REQUESTING EMERGENCY PASSAGE; PROVIDING AN EFFECTIVE
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DATE.
WITH
OTHER
PARTIES
FOR
SUCH
PURPOSE;
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BE IT ORDAINED by the Council of the City of Jacksonville:
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Section 1. Findings and Determinations.
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A.
The
City
has
enacted
Ordinance
97-1054-E
(the
“Bond
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Ordinance”) which authorized issuance of bonds payable from Pledged
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Revenues (as defined therein) to finance capital projects all as
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authorized
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resolutions (“Supplemental Instruments”).
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B.
from
time
to
time
by
supplemental
ordinances
or
Pursuant to Ordinance 98-52-E and Ordinance 2001-1333-E
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(the
“First
and
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authorized
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Bonds, Series 1997 and not exceeding $94,000,000 Capital Projects
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Revenue Bonds, Series 2002 (the “Authorized Bonds”).
not
Second
exceeding
Supplemental
$99,000,000
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Instruments”),
Capital
the
Projects
City
Revenue
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C.
The Mayor, pursuant to the Bond Ordinance and the First
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and Second Supplemental Instruments, has caused the City to issue
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and sell the four Series of Authorized Bonds described in the title
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of this ordinance, which bear interest at a Weekly Rate, are credit
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enhanced by bond insurance, and provide for bondholder tenders for
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purchase
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Agreement from two banks provides a liquidity enhancement.
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D.
and
remarketing,
as
to
which
a
Standby
Bond
Purchase
Recent events in the financial markets have resulted in a
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liquidity crisis, ratings downgrades and the imminent prospect of
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more downgrades adversely affecting institutions writing municipal
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bond insurance policies, and consequent wide fluctuations in weekly
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interest rates and unwillingness of bond investors to own bonds
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with such unstable bond insurance credit enhancement.
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E.
It
is
necessary and desirable to
refund
or otherwise
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restructure the outstanding Authorized Bonds, and to authorize the
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Mayor to undertake such action with all due speed and diligence,
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and to grant the Mayor the widest flexibility to undertake this
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course of action, due to the unprecedented changes rapidly taking
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place in the municipal bond market and other interrelated financial
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and credit markets.
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Section 2. Refinancing and Restructuring Authorized.
hereby
authorized
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is
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restructuring of the Authorized Bonds, all at one time or from time
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to time, in whole or in part, to cause the City to issue and sell
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(at competitive or negotiated sale) refunding Bonds under the Bond
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Ordinance in one or more series, to enter into on behalf of the
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City
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approved by and described in one or more Certificates of the Mayor,
various
to
contracts,
undertake
agreements
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the
or
refunding
other
or
The Mayor
other
instruments
debt
to
be
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to
provide
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deposit agreements, registrar and paying agent and tender agent
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agreements, remarketing agreements, bond purchase agreements and
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other necessary or desirable financial products or services, all of
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which shall be deemed a Supplemental Instrument under the Bond
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Ordinance,
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Council.
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such terms and conditions as the Mayor shall deem in the best
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interests of the City, and such restructured or refunding debt may
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vary the terms of the First and Second Supplemental Instruments as
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the Mayor shall determine, provided that:
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for
all
credit
to
be
enhancement,
undertaken
liquidity
without
facilities,
further
action
escrow
by
the
The debt evidenced by the Authorized Bonds may contain
(1)
the pledge of and lien on the Pledged Revenues shall
not be changed;
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(2)
the outstanding amount of Authorized Bonds shall not
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be increased, except as necessary to provide for any capitalized
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interest for not more than two (2) years, any funded debt service
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reserves,
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restructuring;
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and
(3)
costs
the
of
final
issuance
maturity
of
of
the
the
refunding
outstanding
or
the
Authorized
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Bonds shall not be extended beyond thirty (30) years after the date
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of restructuring or refunding;
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(4)
any
presently
unspent
proceeds
of
the
Authorized
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Bonds shall continue to be applied only as provided in the Bond
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Ordinance and the First and Second Supplements; and
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(5)
the restructuring or refunding shall be consistent
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with the City’s current Debt and Swap Policy, except as provided
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herein.
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Section 3.
Requesting
passage
Passage
of
this
Pursuant
legislation
to
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Council Rule 4.901.
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requested.
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will have a lower interest rate than the currently outstanding
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Bonds, and the sooner the refunding Bonds are issued, the sooner
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the City’s borrowing costs will be lowered.
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Emergency
Emergency
is
The nature of the emergency is that the refunding Bonds
Section 4. Effective
Date.
This
Ordinance
shall
become
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effective upon signature by the Mayor or upon becoming effective
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without the Mayor’s signature.
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Form Approved:
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/s/
John F. Germany, Jr.
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Office of General Counsel
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Legislation Prepared By:
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G:\SHARED\LEGIS.CC\2008\ord\Bond Refunding Ordinance.doc
Livermore, Freeman & McWilliams, P.A.
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