The City of Riviera Beach Utility Special District (the “District”), a public body corporate organized as a dependent special district within the meaning of Chapter 189, Florida Statutes (the “Special District Act”), was created by the City of Riviera Beach, Florida (the “City”) to acquire, own, improve, maintain and operate the City’s water and sewer system. Pursuant to the Special District Act, on June 16, 2004, the City enacted Ordinance No. 2972 creating the District and the City Council of the City (the “City Council”), as the governing body of the District, on June 16, 2004, adopted the Utility Special District Charter for the District.
Pursuant to the District Charter and Resolution No. 11-14UD adopted by the Board of Directors of the District (the “Board of Directors”) on July 2, 2014 (the “Bond Resolution”), the District previously issued (a) its $22,645,000 Water and Sewer Revenue Refunding Bonds, Series 2014, for the purpose of refunding the District’s outstanding Water and Sewer Revenue Bonds, Series 2004, which were issued for the purpose of acquiring the City’s former water supply, treatment and distribution system and wastewater collection, treatment and disposal system and to make certain capital improvements thereto (the “System”); and (b) its $33,205,000 Water and Sewer Revenue Bonds, Series 2016, which were issued for the purpose of acquiring, constructing and installing capital improvements to the System.
Section 4.14 of the Bond Resolution authorizes the issuance of “Additional Bonds” to finance the cost of construction of additions, extensions and improvements to the various components of the System. The District has determined the need to undertake improvements to the System, specifically consisting of a new water treatment plant and other improvements particularly identified in the District’s Five Year Capital Improvement Plan (the “Project”). The District desires to finance a portion of the cost of the Project through the issuance by the District, in one or more series, of its Water and Sewer Revenue Bonds in an amount not to exceed $115,000,000 (the “Bonds”). The Bonds will be Additional Bonds under the Bond Resolution and are expected to be issued as obligations, the interest on which is excludable from gross income for federal income tax purposes.
The City’s Debt Management Policy approved by the City Council on October 2, 2013 (the “Debt Management Policy”), provides for the issuance of bonds and other debt obligations of the District; and
The Board of Directors desires to authorize and direct the Finance Director to proceed toward the issuance of the Bonds in accordance with the Debt Management Policy.