City of Gainesville - File #: 190424.

• File #: 190424.
• Version: 1
• Type: Resolution
• Status: Adopted
• File created: 9/20/2019
• In control: City Commission
• On agenda: 10/3/2019
• Final action: 10/3/2019
• Title: Resolution Related to the City of Gainesville’s Capital Improvement Revenue Note, Series 2019 (B) Resolution No. 190424 A Resolution of the City of Gainesville, Florida authorizing a loan in a principal amount of up to $8,500,000 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 2019, and a loan agreement; providing other details with respect thereto; and providing an effective date.

Date	Ver.	Action By	Action	Result
10/3/2019	1	City Commission	Adopted (Resolution) and Approved the Recommendation	Pass

Title
Resolution Related to the City of Gainesville’s Capital Improvement Revenue Note, Series 2019 (B)

Resolution No. 190424

A Resolution of the City of Gainesville, Florida authorizing a loan in a principal amount of up to $8,500,000 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 2019, and a loan agreement; providing other details with respect thereto; and providing an effective date.

Explanation
During the 2020 budget process, the City Commission approved the issuance of debt to fund various capital projects including the acquisition of a Fire Ladder Truck, Body Worn Cameras for Gainesville Police Department, Equipment Replacement for Gainesville Fire Rescue, Radios for various departments and land for a new Fire Station, including the cost of the evaluation before purchase. Additional projects to be funded with this debt are the City Hall Roof Replacement, LED Streetlights and various ADA Compliance Projects.
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 August 16, 2019 and nine responses were received. The responses were evaluated by the City's Financial Advisor and Finance Department staff and the response from STI Institutional & Government, Inc. (an affiliate of SunTrust Bank, N.A.) was selected as the best evaluated proposal.

Fiscal Note
Funding was appropriated to cover debt service costs as part of the FY20 budget. The Note is payable from Non-Ad Valorem Revenues budgeted and appropriated on an annual and certain funds on deposit in the Debt Service Account and Project Account as described in Sections 6 and 7 of the Resolution. The interest rate on the note is fixed at 1....