HomeMy Public PortalAbout5) Copy of Letter from Pinnacle Public Finance, Inc. on Section 218.385, Florida Statutes, as Amended.pdfJanuary 7, 2014
To: Village of Key Biscayne, Florida
Re: $6,575,000 Village of Key Biscayne, Florida
Stormwater Utility Refunding and Improvement Revenue Bonds, Series 2013
Ladies and Gentlemen:
The undersigned (the "Purchaser") has agreed to purchase from the Village of Key
Biscayne, Florida (the "Village"), the Bonds referenced above (the "Bonds"). The Bonds are
being sold directly to the Purchaser.
The purpose of this letter is to furnish to the Village, pursuant to the provisions of
Subsections (2), (3) and (6) of Section 218.385, Florida Statutes, as amended, certain information
with respect to the direct purchase of the Bonds by the Purchaser, as follows:
(a) There is no managing underwriter for the Bonds.
(b) There are no "finders," as defined in Section 218.386, Florida Statutes, as
amended, with respect to the Bonds.
(c) There is no underwriting spread with respect to the Bonds.
(d) No management fee will be charged by the Purchaser. No commitment fee
will be charged by the Purchaser.
(e) No fee, bonus or other compensation will be paid by the Purchaser in
connection with the Bonds to any person not regularly employed or
retained by it.
(f)
(g)
The name and address of the Purchaser is Pinnacle Public Finance, Inc.,
8377 E. Hartford Drive, Suite 115, Scottsdale, Arizona 85255.
The Village is proposing to issue $6,575,000 of Bonds for the purpose of
refunding the outstanding aggregate principal amount of its $4,450,000
Stormwater Utility Revenue Refunding Bonds, Series 2011, financing
improvements and replacements of drainage wells and outfalls for its
Stormwater Utility System and paying costs of issuance of the Bonds. The
Bonds are expected to be repaid over approximately 17 years. At an
interest rate of 3.35% per annum, total interest paid over the life of the
Bonds will be $2,090,623. The source of repayment or security for the
Bonds is expected to be primarily a pledge of the Stormwater Utility Fees
of the Village and secondarily a covenant to budget and appropriate from
available non -ad valorem revenues. Authorizing the Bonds will result in a
maximum of approximately $511,583 of Stormwater Utility Fees and, if
necessary, non -ad valorem revenues, not being available to finance the
other services of the Village each fiscal year for approximately 17 years.
(h) The Purchaser understands that you require no other disclosures with
respect to the Bonds.
(i) The Purchaser understands that the statements set forth in subparagraphs
(a) through (g) above are for informational purposes only and shall not
affect or control the actual terms and conditions of the Bonds.
Very truly yours,
PINNACLE PUBLIC FINANCE, INC.
By:
Paul Haerle, President