Title
Bond Resolution related to issuance of the City of Gainesville’s Capital Improvement Refunding Notes, Series 2016A (CIRN 2016A) and Capital Improvement Revenue Notes, Series 2016B (CIRN 2016B) (B)
This item involves a request for the City Commission to adopt the proposed resolution authorizing the issuance of a note to provide financing for road construction projects (CIRN 2016B) and a companion refunding note (CIRN 2016A) to advance refund the outstanding Capital Improvement Revenue Note Series 2009, First Florida Governmental Financing Commission Improvement and Refunding Bonds, Series 2007, and First Florida Governmental Financing Commission Improvement and Refunding Bonds, Series 2005 and other costs necessary or incidental thereto. **STAFF PRESENTATION 5 MINUTES**
Explanation
The FY 2011 to 2015 Capital Improvement Plan, approved by the City Commission on May 17, 2010, included approval of a $4.3 million bond issue to fund roadwork through the local option gas tax. This bond was modified to $5 million and delayed to FY 2014 as part of the FY 2013 to 2017 Capital Improvement Plan, approved by the City Commission on May 14, 2012. This loan was not issued during the anticipated time frame due to the adequate levels of funds from local option gas tax. The FY 2015 to 2019 Capital Improvement Plan, approved on July 23, 2014 included a note that this $5 million loan would be issued during the FY 2015 to FY 2019 time period when the cash position indicated the need for additional capital funding for local option gas tax funded projects approved during this and prior Capital Improvement Plans.
At this time, the City has identified that this is the appropriate time to proceed with the $5 million debt issue in order to fund previously approved capital improvement projects funded by the local option gas tax revenue.
Rates in the municipal bond market have fallen to the point where it is financially prudent to advance refund the City’s outstanding Capital...
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