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Resolution related to the City of Gainesville's Capital Improvement Revenue Note, Series 2017 (B)
Resolution No. 170477
A RESOLUTION OF THE CITY OF GAINESVILLE, FLORIDA AUTHORIZING A LOAN IN A PRINCIPAL AMOUNT OF UP TO $10,500,000 TO FINANCE THE COSTS OF CERTAIN CAPITAL IMPROVEMENTS AND OTHER ITEMS DESCRIBED HEREIN AND TO PAY THE COSTS OF SUCH LOAN; APPROVING THE FORM OF A CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2017, AND A LOAN AGREEMENT; PROVIDING OTHER DETAILS WITH RESPECT THERETO; AND PROVIDING AN EFFECTIVE DATE.
Explanation
During the 2017 budget process, the City Commission approved the issuance of debt to fund various capital projects including construction of Fire Station 1 and implementation of an ERP system. On August 3, 2017, the Commission approved adding the costs of certain Heartwood Project infrastructure to the borrowing.
Given the relatively small size of the borrowing, Finance Department staff and the City's Financial Advisor determined that the most efficient form of obtaining capital for the projects would be to solicit competitively for a bank loan. Staff distributed a request for proposals on September 5, 2017 and ten responses were received. The responses were evaluated by the City's Financial Advisor and Finance Department staff and the response from CenterState Bank, N.A. was selected as the best evaluated proposal.
Fiscal Note
Funding was appropriated to cover debt service costs as part of the FY17 budget. The Note is secured by a pledge of certain Non-Ad Valorem Revenues and funds on deposit in the Debt Service Account as described in Sections 6 and 7 of the Resolution. The interest rate on the note is fixed at 2.75% for the 20 year term.
Recommendation
The City Commission: 1) adopt the Resolution authorizing the Loan from CenterState Bank, N.A., including without limitation, entering into a loan agreement and delivering the Capital Improvement Revenue Note, Series 2017, and 2) authorize the Mayor (or Mayor Pr...
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