Title
Refunding of the City of Gainesville's Capital Improvement Revenue Bonds, Series 2005 (B)
This item involves a request for the City Commission to adopt the proposed resolution authorizing the issuance of a refunding note to advance refund outstanding Capital Improvement Revenue Bonds Series 2005.
Explanation
Rates in the municipal bond market have fallen to the point where it is financially prudent to advance refund the City's outstanding Capital Improvement Revenue Bonds, Series 2005 (CIRB 2005). On December 19, 2013 the City Commission authorized staff to seek proposals for a bank loan to refund $13,710,000 of the City's CIRB 2005 original issue. On January 8, 2014 six proposals to refund the issue were received and evaluated.
Fiscal Note
Based on the rates proposed in the selected bid, the City's financial advisor projects savings to the City over the twelve year life of the refunding issue of $1,035,235 on an absolute basis or $902,875 on a present value basis.
Recommendation
The City Commission: 1) adopt the proposed resolution authorizing issuance of the Capital Improvement Refunding Revenue Note Series 2014; 2) authorize the City Manager, Administrative Services Director, and Finance Director to retain the required professional services to execute the proposed issuance; and 3) authorize the Mayor, Mayor Pro Tem , Clerk of the Commission, City Attorney, City Manager, Administrative Services Director, and Finance Director to execute documents required to close the issue.