COUNCIL AGENDA ITEM
SUBJECT:
title
Resolution No. 2024-R-39 Approval of a resolution amending and supplementing Resolution No 2016-R-04 and authorizing the issuance and sale of a Utility System Revenue Note, Series 2024 to Truist Commercial Equity, Inc. to evidence the financing in an amount not to exceed $20,000,000 for the Public Works Complex.
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DEPARTMENT:
Finance
SUMMARY:
The FY2024 Operating budget included the construction of the new Public Works Facility. The estimated not-to-exceed cost specified in the bid was $20,000,000. The RFP (request for proposals) requested a 20-year financing term to be secured by pledged funds as defined in the Master Utility Resolution (Resolution No. 2016-R-04). After reviewing the three (3) responses, it was determined based on the recommendation of the City’s Financial Advisor (Hilltop Securities Inc.) and in consultation with City Staff that the Truist Commercial Equity, Inc. proposal (Option B) was the best overall proposal. A summary of the various proposals received is attached. The Truist Commercial Equity, Inc. proposal (Option B) provides for an attractive interest rate (4.30%) for the full term requested through 2044 and provides the ability to prepay prior to maturity without penalty (after 10-years).
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
BUDGET AMENDMENT REQUIRED: ☐ Yes ☒ No ☐ Not Applicable
RECOMMENDED ACTION:
Motion to approve the Resolution No. 2024-R-39.