Title
Resolution authorizing the Negotiation of a Loan in an Aggregate Amount not to Exceed $11,500,000 from the First Florida Governmental Financing Commission (B)
Explanation
At the February 4 City Commission retreat and the February 18 City Commission workshop staff provided reports on a proposed bond issue for the spring of 2002. A debt issuance at this point in time would allow the City to borrow at favorable rates, utilizing the proceeds to address a number of unmet capital needs. The proposed financing method is a fixed rate borrowing through the First Florida Governmental Financing Commission (FFGFC). The borrowing would be similar to transactions executed by the City through FFGFC in the past.
FFGFC is a consortium of Florida cities and counties, created pursuant to Florida Statutes through an interlocal agreement in 1985. Its specific purpose is to enable a limited number of participating governmental units, who regularly undertake projects requiring significant debt financing and who have substantially similar credit worthiness and a high investment grade rating by nationally recognized rating agencies, to benefit from the economies of scale associated with large financings. In addition to Gainesville, FFGFC's current members are Broward County and the cities of St. Petersburg, Sarasota, Clearwater, Boca Raton and Hollywood.
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 its revenue bonds to provide the funds.
Fiscal Note
A number of different funding sources have been identified to meet the projected debt service requirements associated with this borrowing. The specific funding sources are dependent upon the ultimate size and project mix of the borrowing.
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