A SPECIAL MEETING OF THE BOARD OF COUNTY COMMISSIONERS
NOVEMBER 6, 1987
The Lake County Board of County Commissioners met in special session on Friday, November 6, 1987 at 9:30 a.m. in the Board of County Commissioner's Meeting Room, Lake County Courthouse, Tavares, Florida. Commissioners present at the meeting were: Thomas J. Windram, Chairman; Claude E. Smoak, Jr.; and James R. Carson, Jr. Others present were: Christopher C. Ford, County Attorney; James C. Watkins, Clerk; Michael C. Willett, County Administrator; Katherine A. McDonald, County Administrator's Assistant; Robert L. Wilson, Finance Director; and Toni M. Austin, Deputy Clerk.
BONDS/LAWS AND LEGISLATION/RESOLUTIONS
Commr. Windram informed the Board and staff members that it was a concensus of all involved, to hire a financial advisor, due to the passage of the referendum pertaining to the 20% sales surtax, commonly known as the one-cent local sales tax. Therefore, the firm of Raymond James and Associates, St. Petersburg, Florida, has been employed by the County. He stated, at this point, that they had discussed the firms that would be interested in serving in the capacity of underwriter, and came up with a senior manager, from the firm of Alex Brown and Associates, Naples, Florida, who will handle 50% of the issue, with a co-manager from the firm of Southeastern Municipal Bonds, in consortion with Merrill-Lynch at 20%; Smith-Barney at 20%; A. G. Edwards at 10%. He stated that discussion occurred regarding a bond council, with the choice being Foley and Lardner, Jacksonville, Florida.
Commr. Windram stated that the overall feeling, from everyone involved, was to go with a bond issue, being that this was the only way Lake County could be assured that the sales tax could not be taken away. The intent was to lock in the 20% sales surtax on goods, leaving that portion of the sales tax generated from services, in view of the fact that there could be some changes made in the Legislature.
Commr. Windram stated that the Legislative meeting scheduled for December 1, 1987, may not even address sales tax, but be limited to malpractice insurance.
It was estimated that the amount of the bond issue would be approximately 37 million dollars, having an anticipated revenue of 7.9 million dollars a year, which are the figures the Department of Revenue presented to the County, excluding the service tax.
Mr. Chris Ford, County Attorney, stated that the financial advisors have recommended, with the underwriters preparing it, to include a parity clause in the bond issue, which means, if the County does get more money than anticipated, or if the Legislature happens to leave the service tax intact, one can go into a second bonding issue, if one felt it was wise and advisable to do so.
Mr. Ford stated that he would like to make it clear that the County is not intending to pledge the service portion of the tax and thereby interfere with the Legislature's freedom to repeal or reduce the service tax.
Mr. Ford stated that, although the resolution covers the entire tax, in the event that the legislative action should be pending or probable, preceeding the proposed closing of the bond issue, then the bond resolution will be amended by the County to expressly exclude the portion of the tax attributable to services. Be stated that a tentative hearing date has been scheduled with Judge Ernest C. Aulls November 30, 1987, at 1O:OO a.m., for a bond validation hearing.
Mr. Van Saylor, Raymond James and Associates, informed the Board that the average interest rate would be 7.5%.
On a motion by Commr. Smoak, seconded by Commr. Carson and carried unanimously, the Board approved Resolution #1987-63 as follows:
A Resolution providing for the acquisition, construction and equipping of a new jail and criminal justice complex and the acquisition, preparation and equipping of a sanitary landfill area for Lake County, Florida; authorizing the issuance by the County of not exceeding $50,000,000 in aggregate principal amount of sales tax revenue bonds, series 1987, to finance the cost thereof; pledging the County's portion of the discretion-ary infrastructure sales surtax to secure payment of the prin-cipal of and interest on such bonds; making certain convenants and agreements for the benefit of the holders of such bonds; authorizing a negotiated sale of such bonds: and providing an effective date.
On a motion by Commr. Carson, seconded by Commr. Smoak and carried unanimously, the Board authorized the validation of the suit.
Discussion occurred regarding action taken by other counties regarding a one-cent sales tax.
There being no further business to be brought to the attention of the Board, the meeting adjourned at 10:03 a.m.
THOMAS J. WINDRAM, CHAIRMAN
JAMES C. WATKINS, CLERK