Title
Bond Resolution Related to the Refunding of the First Florida Governmental Financing Commission Series 2002 (FFGFC 2002) Bonds (B)
This item involves a request for the City Commission to adopt the proposed resolution authorizing the issuance of bonds to refund the outstanding FFGFC 2002 bonds.
Explanation
With the recent rally in the municipal bond market, rates have fallen to the point where it is financially prudent to refund the City's outstanding FFGFC 2002 bonds. The proposed Capital Improvement Revenue Refunding Bonds, Series 2011 issue would refund $6.2 million of the original FFGFC 2002 issue, with the final maturity of the refunding issue equal to that of the original bonds. Given the relatively small size of the proposed refunding, staff and the City's financial advisor have determined that the most cost-effective method for accessing the capital markets for this transaction is the utilization of a bank-qualified loan.
Fiscal Note
Given current market rates the City's financial advisor projects savings to the City over the 10 year life of the refunding issue of approximately $700,000.
Recommendation
The City Commission: 1) adopt the proposed resolution authorizing issuance of the Capital Improvement Revenue Refunding Bonds, Series 2011; 2) authorize the City Manager, Administrative Services Director, and Finance Director to retain the required professional services to execute the proposed bond issue; and 3) authorize the Clerk of the Commission, City Attorney, City Manager, Administrative Services Director, and Finance Director to execute documents required to close the proposed bond issue.