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FIRST FLORIDA GOVERNMENTAL FINANCING COMMISSION LOAN 2001 - FLEET ACQUISITIONS (B)
A Resolution of the City Commission of the City of Gainesville, Florida, authorizing the negotiation of a loan in an aggregate amount not to exceed $4,500,000 from the First Florida Governmental Financing Commission; approving the acquisition, construction, reconstruction, improvement and equipping of certain capital projects and the refinancing of a prior loan made by the Commission to the City; approving the execution and delivery of a Loan Agreement with the First Florida Governmental Financing Commission; approving the execution and delivery of an Escrow Deposit Agreement; providing certain other matters in connection with the making of such loan; approving the execution of and delivery of a Continuing Disclosure Certificate; repealing obsolete Resolution No. 001009; and providing an effective date.
explanation
On February 26, 2001 the City Commission adopted Resolution No. 001009 which authorized the City to enter into a loan agreement with the First Florida Governmental Financing Commission (FFGFC) for the acquisition of five fire vehicles as well as all of FY02 budgeted fleet acquisitions.
Subsequent to the adoption of this resolution, an alternative financing structure has been proposed. Under the proposed structure, in addition to the new money needs for vehicle acquisitions contained in the original resolution, several participating members of the FFGFC, including Gainesville, identified potential refunding opportunities. The revised bond issue, which calls for the refunding of $900,000 in FFGFC Series 1996 bonds, will provide a modest debt service savings to Gainesville over the next eight years while spreading the debt issuance costs over a greater number of participants in the issue.
The proposed resolution authorizes the City to enter into a loan agreement with the FFGFC, and authorizes the Mayor, Clerk and other City officials to execute documents required by the FFGFC as a prerequisite to making the loan, subject to the approval of the City Attorney as to form and legality. The FFGFC will issue revenue bonds to provide the funds
Fiscal Note
Funds for the FY01 and FY02 fleet purchases are available between the Fleet Service Replacement Fund reserve and proposed appropriations. The loan from the FFGFC will provide a cost-effective funding source for the proposed fleet purchases.
recommendation
The City Commission adopt the proposed resolution.