1 Introduced by the Council President at the request of the Mayor: 2 3 4 ORDINANCE 2008-307 5 AN ORDINANCE AUTHORIZING THE ISSUANCE OF REFUNDING 6 BONDS OR OTHER DEBT RESTRUCTURE OF THE CITY’S DEBT 7 PRESENTLY OUTSTANDING UNDER ORDINANCE 97-1054-E AND 8 KNOWN AS CAPITAL PROJECT REVENUE BONDS, SERIES 1997- 9 1, SERIES 1997-2, SERIES 1997-3 AND SERIES 2002-1; 10 DELEGATING TO THE MAYOR, SUBJECT TO THE GUIDELINES 11 SPECIFIED HEREIN, FULL AUTHORITY TO ACCOMPLISH THE 12 SAME, INCLUDING BUT NOT LIMITED TO ENTERING INTO 13 AGREEMENTS 14 REQUESTING EMERGENCY PASSAGE; PROVIDING AN EFFECTIVE 15 DATE. WITH OTHER PARTIES FOR SUCH PURPOSE; 16 17 BE IT ORDAINED by the Council of the City of Jacksonville: 18 Section 1. Findings and Determinations. 19 A. The City has enacted Ordinance 97-1054-E (the “Bond 20 Ordinance”) which authorized issuance of bonds payable from Pledged 21 Revenues (as defined therein) to finance capital projects all as 22 authorized 23 resolutions (“Supplemental Instruments”). 24 B. from time to time by supplemental ordinances or Pursuant to Ordinance 98-52-E and Ordinance 2001-1333-E 25 (the “First and 26 authorized 27 Bonds, Series 1997 and not exceeding $94,000,000 Capital Projects 28 Revenue Bonds, Series 2002 (the “Authorized Bonds”). not Second exceeding Supplemental $99,000,000 1 Instruments”), Capital the Projects City Revenue 1 C. The Mayor, pursuant to the Bond Ordinance and the First 2 and Second Supplemental Instruments, has caused the City to issue 3 and sell the four Series of Authorized Bonds described in the title 4 of this ordinance, which bear interest at a Weekly Rate, are credit 5 enhanced by bond insurance, and provide for bondholder tenders for 6 purchase 7 Agreement from two banks provides a liquidity enhancement. 8 D. and remarketing, as to which a Standby Bond Purchase Recent events in the financial markets have resulted in a 9 liquidity crisis, ratings downgrades and the imminent prospect of 10 more downgrades adversely affecting institutions writing municipal 11 bond insurance policies, and consequent wide fluctuations in weekly 12 interest rates and unwillingness of bond investors to own bonds 13 with such unstable bond insurance credit enhancement. 14 E. It is necessary and desirable to refund or otherwise 15 restructure the outstanding Authorized Bonds, and to authorize the 16 Mayor to undertake such action with all due speed and diligence, 17 and to grant the Mayor the widest flexibility to undertake this 18 course of action, due to the unprecedented changes rapidly taking 19 place in the municipal bond market and other interrelated financial 20 and credit markets. 21 Section 2. Refinancing and Restructuring Authorized. hereby authorized 22 is 23 restructuring of the Authorized Bonds, all at one time or from time 24 to time, in whole or in part, to cause the City to issue and sell 25 (at competitive or negotiated sale) refunding Bonds under the Bond 26 Ordinance in one or more series, to enter into on behalf of the 27 City 28 approved by and described in one or more Certificates of the Mayor, various to contracts, undertake agreements 2 the or refunding other or The Mayor other instruments debt to be 1 to provide 2 deposit agreements, registrar and paying agent and tender agent 3 agreements, remarketing agreements, bond purchase agreements and 4 other necessary or desirable financial products or services, all of 5 which shall be deemed a Supplemental Instrument under the Bond 6 Ordinance, 7 Council. 8 such terms and conditions as the Mayor shall deem in the best 9 interests of the City, and such restructured or refunding debt may 10 vary the terms of the First and Second Supplemental Instruments as 11 the Mayor shall determine, provided that: 12 13 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; 14 (2) the outstanding amount of Authorized Bonds shall not 15 be increased, except as necessary to provide for any capitalized 16 interest for not more than two (2) years, any funded debt service 17 reserves, 18 restructuring; 19 and (3) costs the of final issuance maturity of of the the refunding outstanding or the Authorized 20 Bonds shall not be extended beyond thirty (30) years after the date 21 of restructuring or refunding; 22 (4) any presently unspent proceeds of the Authorized 23 Bonds shall continue to be applied only as provided in the Bond 24 Ordinance and the First and Second Supplements; and 25 (5) the restructuring or refunding shall be consistent 26 with the City’s current Debt and Swap Policy, except as provided 27 herein. 3 1 Section 3. Requesting passage Passage of this Pursuant legislation to 2 Council Rule 4.901. 3 requested. 4 will have a lower interest rate than the currently outstanding 5 Bonds, and the sooner the refunding Bonds are issued, the sooner 6 the City’s borrowing costs will be lowered. 7 Emergency Emergency is The nature of the emergency is that the refunding Bonds Section 4. Effective Date. This Ordinance shall become 8 effective upon signature by the Mayor or upon becoming effective 9 without the Mayor’s signature. 10 11 Form Approved: 12 13 14 /s/ John F. Germany, Jr. 15 Office of General Counsel 16 Legislation Prepared By: 17 G:\SHARED\LEGIS.CC\2008\ord\Bond Refunding Ordinance.doc Livermore, Freeman & McWilliams, P.A. 4