Ordinance 2001-139 - Laserfiche WebLink

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WHEREAS, by pooling the respective financial needs of these certain various local governmental units, the Borrower will be able to access additional markets and expects to receive the benefits of lower interest rates on more favorable terms associated with such a large scale financing with such benefits being obtained for and inuring to the Borrower; and WHEREAS, the Council is in the process of issuing its Florida Municipal Loan Council Revenue Bonds, Series 2001A (the "Bonds") and is seeking to make loans (the "Loans") to governmental units; and WHEREAS, it is hereby determined that a need exists to borrow funds to refund all of the Borrower's outstanding Utilities Tax Revenue Bond, Series 1998, Utilities Tax Revenue Bond, Series 1 999A, Utilities Tax Revenue Bond Series 1998 and Bond Anticipation Note, Government Center Series, (the "Project"). The outstanding amounts are set forth on Exhibit "D" attached hereto. WHEREAS, it is determined to be in the best interest of the Borrower to borrow funds from the Council from the proceeds of the Bonds to consolidate existing debt. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: SECTION 1. AUTHORITY. This Ordinance is adopted pursuant to Chapter 166, Florida Statutes, and other applicable provisions of law. SECTION 2. PROJECT. The refinancing of the Project is hereby approved. SECTION 3. NEGOTIATED LOAN. Due to the complicated nature of the refinancing and the ability of the Council to access additional markets and for the Borrower to receive the benefits of lower interest rates and issuance costs, it is hereby determined that it is in the best interest of the Borrower that the Loan to the Borrower be made from the proceeds of the Bonds, as opposed to the Borrower borrowing funds pursuant to a public sale. SECTION 4. LOAN AMOUNT. The amount of the Loan of the Borrower evidenced by the Loan Agreement shall not exceed $11,000,000. Such Loan shall be made at a discount which shall include a pro-rata portion of costs of issuance incurred by the Council together with a pro-rata portion of a reserve fund surety cost and the League of Cities administrative fees and other on-going costs and shall bear interest and shall be repayable according to the terms and conditions set forth in the Loan Agreement authorized pursuant to Section 5 herein below with such changes, insertions and omissions as may be approved by the Mayor or in his absence, the Vice Mayor and attested to by the City Clerk. The loan shall bear interest at a true interest cost rate not in excess of seven percent (7%); and shall mature not later than twenty-five (25) years and shall be in the amount set forth in the Loan Agreement. The redemption provisions, if any, relating to such Loan shall be as provided in the Loan Agreement. 2 Legislation - Attny: Ordinance Authorizing Negotiation of Loan Not to Exceed $11,000,000.