The passing of a key Commission Resolution at the City of Miramar’s October 4, 2017 Commission meeting has authorized the issuance of the Refunding of Utility System Revenue Bonds, Series 2017, to refund the 2007 Utility System Revenue Improvement Bond. The timing of this integral financial strategy by Miramar City Commission and Manager will result in a substantial savings to the City; due to a decline in present interest rates. Moreover, it will afford the City a future debt service savings of approximately $5 million.
Commission planning relative to this opportunity began early in 2017 and was further facilitated on September 19, 2017, when the Miramar Commission approved Resolution No. 17-204 awarding a competitively bid RFP 17-07-33 for investment banking services and the sale of the Bonds in a negotiated sale. The timing of this transaction provides that the City can enter the market at an advantageous time, obtain the best price and best interest rate for the Bonds. The estimated costs of this transaction will be approximately $314,000.
The pledged revenue for repayment of the earlier Refunded 2015 Utility Bond and this 2017 Refunding will be the Water and Waste-Water (Sewer) System Revenues. The City’s Financial Advisors and Rate Consultants were instrumental in the negotiations with the holder of the 2015 Bond.
City Manager, Kathleen Woods-Richardson added that “The City of Miramar Commission planning foresight has garnered the assignment of S&P Global Rating of an 'AAA' rating to Miramar, Florida series 2017 utility system refunding revenue bond; as well as a Moody's Investors Service rating assignment of Aa2. These ratings have established that the City’s Utility System is qualified as a stable, well-managed financial operations supported by annual rate increases, low debt burden, healthy debt service coverage and adequate legal provisions.”
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