PLACEMENT: Departmental
TITLE:
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ADOPTION OF A RESOLUTION FOR ISSUANCE OF UTILITIES SYSTEM REVENUE BONDS SERIES 2026A, AND FOR REFUNDING REVENUE BONDS, SERIES 2026B TO REFUND REVENUE BONDS SERIES 2016A
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EXECUTIVE SUMMARY:
executive summary
Approval will provide for issuance of up to $60,000,000 utilities system revenue bonds, series 2026A to finance certain utilities system capital improvements, and up to $20,000,000 utilities system refunding revenue bonds, series 2026B to refund all or portions of outstanding utilities system refunding revenue bonds, series 2016A; authorizing competitive bids; approving forms of official notices of sale and summary notice of sale pertaining to such bonds; approving forms of the preliminary official statement, continuing disclosure certificate, and registrar and paying agent agreement; authorizing the execution and delivery of final official statement, continuing disclosure certificate, and registrar and paying agent agreement.
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DEPARTMENT: Utilities and Solid Waste
PREPARED BY: Name: Jeremy Covey, P.E.
Title: Utilities Deputy Director
REQUESTED BY: Samuel Amerson, P.E., Utilities and Solid Waste Director
PRESET: 1:45 PM
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
Subject to satisfying parameters in the Resolution, the County has a need to finance on a tax-exempt basis certain long-useful life capital improvements to its Utilities System commensurate with the useful life of such assets, and, depending on market conditions and subject to satisfaction of parameters in the Resolution, may have an opportunity to refinance existing debt for net present value debt service savings.
Currently the consolidated water system consists of two interconnected water treatment plants, North Water Treatment Plant and the Tropical Farms Water Treatment Plant.
The North Water Treatment Plant is currently permitted at 8.8 million gallons per day of capacity. Proposed capacity-related improvements will expand the permitted capacity by an additional 0.5 million gallons per day, for a proposed permitted capacity of 9.3 million gallons per day.
The Tropical Farms Water Treatment Plant is currently permitted at 10.7 million gallons per day of
capacity. Proposed capacity-related improvements will expand the permitted capacity by an additional 4.6 million gallons per day, for a proposed permitted capacity of 15.3 million gallons per day.
Combined permitted capacity of both Water Treatment Plants currently is 19.5 million gallons per day. The current maximum daily flow in the past 12 months is 16.174 million gallons per day, resulting in the system being at 83% of its’ capacity currently.
Chapter 11, Section 11.5 of the Martin County Comprehensive Growth Management Plan requires design of essential improvements when the system reaches 80% capacity and beginning construction when the system reaches 90% capacity.
The expansion-related capital improvements at both the North Water Treatment Plant and Tropical Farms Water Treatment Plant have both been designed and permitted.
The proposed capital improvements are listed below:
• Floridan Aquifer Well # 5 at the North Water Treatment Plant to provide additional water production capacity and redundancy
• Electrical Improvements at the North Water Treatment Plant for plant rehabilitation purposes and capacity-related improvements
• Media replacement, repairs and rehabilitation, and replacement of filter control panel at the North Water Treatment Plant
• Floridan Aquifer Well # 8 at the Tropical Farms Water Treatment Plant to provide additional water production capacity
• Expansion-related improvements including additional reverse osmosis treatment trains and other facilities and improvements to expand the current water treatment plant capacity of the Tropical Farms Water Treatment Plant by 4.6 million gallons per day
ISSUES:
The Martin County Consolidated Water System is currently at 83% of its’ permitted capacity. Without the proposed improvements, funded by the proposed bond, Martin County will not be following the regulations set in Section 11.5 of the Comprehensive Plan.
In addition, per Section 11.5 no additional reservations shall be made at 100 percent of rated capacity unless construction of improvements is underway.
The proposed revenue bonds sale, the associated bond interest rate, and the bond rating depend on the Martin County Utilities ability to increase water/sewer rates as proposed in a separate agenda item presented on October 27, 2026. If the proposed utility rates are not approved, the bond interest rates will be impacted, and the capacity-related improvements will need to be reevaluated.
LEGAL SUFFICIENCY REVIEW:
Bryant Miller Olive P.A., the County’s Bond and Disclosure Counsel, has reviewed the agenda item summary and Resolution with attachments and confirmed the form of each is proper.
RECOMMENDED ACTION:
RECOMMENDATION
• Move that the Board adopt the Resolution for issuance of Utilities System Revenue Bonds Series 2026A, and for Refunding Revenue Bond Series 2026B to refund Revenue Bond Series 2016A.
• Move that the Board authorize the Chair and the County Administrator to sign all bond-related documents.
ALTERNATIVE RECOMMENDATIONS
None
FISCAL IMPACT:
RECOMMENDATION
The issuance of the Series 2026A Bonds will fund not to exceed $60,000,000 of capital improvement projects related to the County’s utility system, including but not limited to improvements at the North Water Treatment Plant and Tropical Farms Water Treatment Plant. The Series 2026A Bonds will be repaid over 20 years at a true interest cost not to exceed 5.25%. The estimated annual debt service is approximately $4,500,000. The 2026B Bonds will only be issued if the County can achieve net present value debt service savings of at least 3.00% of the refunded bonds par amount. The County anticipates receiving credit ratings from S&P Global Ratings and Fitch Ratings in the AA category. If approved, the bonds will be sold competitively the week of November 9, 2026 and the closing will occur the week of November 30, 2026.
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☒Resolution
☐Other: