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The Florida Ports Financing Commission
On July 17, 1996, the Florida Ports Financing Commission (the Commission) was created by
interlocal agreement among public entities pursuant to Section 320.20(3) and Chapter 163, Part I, F.S.
This entity is a public body which meets in the sunshine, holds publicly advertised meetings, maintains public
records, and whose actions are governed by all the Florida statutes pertaining to such bodies.
The Florida Ports Finance Commission is similar to other commissions and authorities formed by Florida local governments pursuant to Section 163.01(7)(d), F.S., to offer efficiencies in financing public works projects. The rationale behind the Legislature's granting such authority is that borrowing done through a group effort reduces the cost of issuance associated with such borrowing.
The responsibility of the Florida Ports Financing Commission is to accept the list of projects approved by the Florida Seaport Transportation & Economic Development Council (FSTED) and implement the bond funding program pursuant to the provisions of Sections 320.20(3) and 320.20(4),F.S. The Commission's purpose is to provide a cost-effective means of financing various capital projects for Florida's ports by issuing bonds and transferring the proceeds to the individual ports. The Commission and the Trustee entered into an indenture of trust, dated December 1, 1996, which authorized the issuance of $222,320,000 Florida Ports Financing Commission Revenue Bonds, Series 1996. The Commission and the Trustee also entered into an indenture of trust, dated September 1, 1999, which authorized the issuance of $153,115,000 Florida Ports Financing Commission Revenue Bond Series 1999 focused on intermodal transportation projects.
On December 1996, the Series 1996 bonds were issued and on October 1999, the Series 1999 bonds were issued to provide funds to finance the costs of acquiring and constructing capital projects undertaken by Florida's ports located in the State of Florida. The commission loans the proceeds of the bonds to the ports pursuant to separate loan agreements individually entering into between each of the ports and the commission after duly advertised TEFRA hearings, held by the governing board of ports and matching requirements verified by the Financial Advisor to the Florida Ports Finance Commission.
The loan agreements entered into by the ports provide that the ports will repay their loans solely from money received from the State Transportation Trust Fund (STTF). Pursuant to Sections 320.20(3) and 320.20(4), F.S., $15,000,000 and $10,000,000, respectively, of the revenues received by the state of Florida motor vehicle registration fees is to be deposited annually in the STTF for financing projects. Payments under the loan agreements are made solely from money on deposit in the STTF. The Department of Transportation and the Commission entered into two separate master agreements, one for each bond series, pursuant to which the Department of Transportation agrees to transfer the State money annually to escrow accounts held in the State Treasury, on behalf of the Trustee, which may be drawn upon by the Trustee to pay the debt services on the bonds. The ports assigned all of the rights, title and interest to the moneys allocated to them from State money to the trustees, on behalf of the commission, to pay their portion of the debt service on the bonds.
An ongoing process of oversight through the Department of Transportation's Project Monitors and the FSTED Program Administrator was created at the outset of the bond programs to review the status of the program projects with respect to the terms of the local agreements. The General Consultant to the FSTED Council and FPFC also monitors the financial status of the bond proceeds reporting on bond funds spend-down progress.
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