Municipal Bonds

Featured Bond: Collier County, Naples FL – Water & Sewer District $78.54 Million Revenue Bonds


Featured Municipal Bond Issue, Week of April 1, 2019: Collier County (Naples, FL) Water and Sewer District — $78.54 Million 


Naples, FL

Naples Botanical Garden – Naples, FL

Overview

This week, MuniNet features the county of Collier in Naples, FL.  During the week of April 1st, the County intends to issue by competitive sale a total of  $78,540,000 Water and Sewer Revenue Bonds.  The Series 2019 bonds are to be used to finance the acquisition, construction, and equipping of Water and Sewer improvements in the Northeast area of the County, fund a portion of the debt service reserve account, and pay the costs of issuance of the bonds. The capital improvements include construction of drinking water transmission mains, wastewater collection force mains, and irrigation water transmission mains, and expansion of facilities needed to provide drinking water.

The interest will be payable biannually starting on July 1 every July 1 and January 1 until 2039. Interest on the Series 2019 bonds is in the opinion of Bond Counsel tax-exempt for federal income tax purposes.

The bonds being sold are rated Aaa by Moody’s and AAA by Fitch.  PFM Financial Advisors LLC is the Financial Advisor to the District with respect to the sale. The Advisor will not engage in underwriting activities with regards to the issuance and sale of the bonds.  The sale is scheduled to occur  April 2, 2019.

About Collier County

Collier County encompasses 2,206 square miles, and in terms of land area, is the largest county in Florida. The estimated population as of 2018 was 368,534. The Water & Sewer District’s median customer age in 2017 was 50.9, with Seniors 65 and up making up 31.5% of the District’s population. For reference, the percent of Florida residents in 2017 age 65 and older was 20.1%.   The median home value of the District for 2017 is $316,200 compared to $178,700 for the State of Florida.

Security for the Bonds

The District previously issued Water and Sewer Refunding Bonds Series 2013, Series 2015, Series 2016, and Series 2018, or collectively called the “Outstanding Parity Bonds”. The Series 2019 Bonds will be issued as Additional Bonds on a parity with the Outstanding Parity Bonds. The principal of, if any, and interest will be secured by a pledge of the lien upon the following:

  • Net Revenues
  • System Development Fees
  • Special Assessments & Special Assessment Proceeds
  • Pledged Funds

The District covenants that in each Fiscal Year it will fix, establish, and maintain such rates, collect such fees or charges, and revise when necessary. They will also provide in each Fiscal Year:

  • Net Revenues, System Development Fees, and Special Assessment Proceeds adequate at all times to pay in each Fiscal Year at least 125% of the Annual Debt Service on all Outstanding Bonds becoming due that Fiscal Year
  • Net Revenues adequate to pay at least 100% of the Annual Debt Service on all Outstanding Bonds and any required deposits to the Reserve Account becoming due in such Fiscal Year.

These details and more on purposes, security,  risks and other matters pertaining to these Collier County, FL revenue bonds can the found in the official statement, provided by MuniOS as well as the supplemental preliminary official statement.   After registering, visitors can link directly to the official statement by searching for Collier County.



 


Financial Statistical Snapshot

Collier County Water & Sewer District Fund Table

Collier County Water and Sewer financial snapshot as of September 30, 2018 Fiscal Year Audit.  Source: Merritt Research Services, LLC

Provided above is a quick snapshot of financial characteristics of the Collier County Water and Sewer District Fund, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness). In addition to the Merritt information related to the featured bond, more information can be found on our city, state, and county pages.

These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.

Potential investors should rely only on the official documents and figures provided in the official statement (prospectus).  Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies,  they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.

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