HomeMy WebLinkAbout21-050ARESOLUTION 21-050A
A RESOLUTION OF THE ST. LUCIE COUNTY WATER
AND SEWER DISTRICT AMENDING AND
SUPPLEMENTING RESOLUTION NO. 13-232A OF THE
DISTRICT; MODIFYING, THE DEFINITION OF THE
TERM "COST OF OPERATION AND MAINTENANCE"
BASED ON A CHANGE IN ACCOUNTING RULES; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the District Commission of the St. Lucie County Water and Sewer District
(the "District") adopted on November 5, 2013 its Resolution No. 13-232A (the "Original
Resolution"), providing for the issuance from time to time of its Utility System Revenue Bonds,
and providing for certain covenants and agreements in connection therewith; and
WHEREAS, said Original Resolution includes the determination of the "Cost of Operation
and Maintenance" of the District's water and sewer system (the "System") for the purpose of
complying with the rate covenant and meeting the additional bonds test and for operation of the
System under the terms of the Original Resolution; and
WHEREAS, due to a change in accounting standards, the application of said definition
creates an ambiguous and inconsistent result compared to the way such costs are commonly
determined in government water and sewer financings and as the same have been so determined
with respect to the District's obligations for the past eight years, in that expenses for other post -
employment benefits and pension payments are required to be accrued even though the District
intends to pay such payments on a pay-as-you-go basis in the future, thereby creating an
unintended imbalance for calculations under the Original Resolution; and
WHEREAS, Section 22(A) of the Original Resolution permits the amendment thereof "to
make any changes or corrections in this Resolution as to which the Issuer shall have been advised
by Bond Counsel that are required for the purpose of curing or correcting any ambiguity or
defective or inconsistent provisions or omission or mistake or manifest error contained in this
Resolution, or to insert in this Resolution such provisions clarifying matters or questions arising
under this Resolution as are necessary or desirable"; and
WHEREAS, the District's Bond Counsel has advised that such amendment is necessary
to address this ambiguity and inconsistency; and
WHEREAS, the District desires to amend the Original Resolution to change the definition
of "Cost of Operation and Maintenance" such that the same is calculated in the manner it
historically has up until the change in accounting standards, which shall "correct inconsistent
provisions" and "clarify matters or questions" arising under the Original Resolution within the
meaning of Section 22(A) as described above;
NOW, THEREFORE, BE IT RESOLVED BY THE DISTRICT COMMISSION OF
THE ST. LUCIE COUNTY WATER AND SEWER DISTRICT as follows:
SECTION 1. The definition of "Cost of Operation and Maintenance" set forth in Section
2 of the Original Resolution is hereby amended to read as follows:
"Cost of Operation and Maintenance" of the System shall mean the Issuer's then current
expenses, paid or accrued, in the operation, maintenance and repair of the System, as calculated in
accordance with generally accepted accounting principles, including, but not limited to, general
administrative and indirect labor costs, personal services, contractual services, repairs and
maintenance, and materials and supplies, but shall not include capital expenditures, any reserve
for renewals and replacements, any allowance for depreciation, any Debt Service Requirement,
any costs of issuance associated with a Series of Bonds, any payments in lieu of taxes, franchise
fees or other transfers, costs incurred with respect to the issuance of Additional Parity Obligations
or amounts budgeted and paid from amounts on deposit in the Renewal and Replacement Fund, or
any accruals for pension or other post -employment payments that relate to obligations beyond the
succeeding fiscal year.
SECTION 2. Except as amended hereby, the Original Resolution shall remain in full
force and effect.
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PASSED AND ADOPTED this 23rd day of March, 2021.
BOARD OF COUNTY COMNUSSIONERS
OF ST. LUCIE COUNTY, FLORIDA, sitting as
the St. Lucie County Water and Sewer District
�W,Zr4ll -
Chris Dzado y
Its: Chair
APPROVED:
JPMorgan Chase Bank, N.A., as owner of the
District's Taxable Utility System Refunding
Revenue Bond, Series 2020
By:
S
Its: r'"Q- ,--c); r ,-, tv(,
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