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Port Orange previews $30M parks bonds, public-works financing and possible refundings; council to seek bond rating
Summary
Financial advisers outlined plans to issue voter-approved $30 million parks bonds and financing for a public works facility (approx. $21.9M), discussed refunding candidates and a timeline for seeking a bond rating and sale windows.
Financial adviser Toby Wagner of Southeastern Investment Securities presented an updated financing plan to the City Council that would reimburse previously spent park bond dollars and finance an upcoming public works facility.
Wagner said the city is preparing to issue approximately $30 million in voter-approved general obligation (GO) park bonds and additional debt for the public works facility, described in the presentation as roughly $21.9 million with about $7–8 million already spent and eligible for reimbursement. Wagner recommended 30-year issues for the new money and said refunding opportunities exist for prior issues (notably the 2005 and 2014 series) if market conditions are favorable.
On timing, Wagner said staff expects to seek a bond rating and, depending on the market, begin sale activity in the next 30–60 days. He emphasized that Port Orange could time the sale to avoid volatile market windows: "We'll pick a market that feels right, and pick a week to go into the market that is settled down, and we're not in a rush to do both of these financings," Wagner said.
Wagner described a 10-year call (a lockout period before tax-exempt advance refunding is available) on the proposed structure and suggested a double-A rating assumption for pricing. He said using a covenant-to-budget-and-appropriate structure for certain public-works bonds — while paying debt service from the enterprise fund — can improve market reception and lower interest costs.
Council members asked about flexibility if rates move after issuance. Wagner said taxable issuance or shorter prepayment windows are available but can be more expensive, and that the team can consider taxable issuance followed by conversion if market conditions change.
No formal action was taken; staff will return with ordinance readings and a resolution as the financing proceeds. Wagner and staff recommended monitoring refunding opportunities and obtaining a bond rating before finalizing sale timing.
