Fort Walton Beach Council agenda — 04-12-11 regular — reading text

be secured by a "aovenantto budget and appropriate" (CBA) from non ad- valorem revenues as opposed to lease structures secured by annual appropriation. N Accordingly, we think it would be more efficient and cost effective to secure the obligation through a n C4 traditional non ad- valorem revenue note —please seethe following sections captioned Secud and o ra Documentation for further details. a O Issuer: City of Fort Walton Beach, Florida. Amount: $ 965, 000 Non Ad- Valorem Revenue Note, Series 2011 ( the " Note "). Purpose of Issue: Proceeds of the Series 2011 Note will be used to finance a Ladder Truck over a 10 year period ( Component A Equipment) and to finance equipment for the City's Golf Course over a 5 year period (Component B Equipment), and to pay the cost of issuance of the Note, all as further delineated in the City's RFP ( collectively the " Project"). We have revised our original proposal letter to combine the amortization schedules for the Component A Equipment and Component B Equipment into one ( 1) " blended" amortization schedule, which is attached to this proposal. 113 Designer Circle / Dothan, AL 36303 334- 792 -8422 / Fox 334 -792 -84241 Toll Free ( 888) 516 -7373 Packet Pi. 68  10.2.6 N Rh Xeft City of Fort Walton Beach —Series 2011 Note Page 2 Authority for Issue: Provisions of the Florida Constitution, the Charter of the City of Fort Walton Beach, Florida, as amended; Chapter 166, Part 11 of the Florida Statutes, and any other valid Constitutional and statutory authority. Dated Date of Note - Date of Delivery LL J0 C Form of Certificate: The Note will be issued as single typewritten or printed certificate, in fully w E registered form. 0 L Q. 0. E Note Structure, Interest Rate & Term: The City has requested a " bank qualified" tax exempt fixed a rate. The Note would be repaid utilizing forty ( 40) quarterly payments of principal and interest. c. Pursuant to this request we are offering the following terms and interest rate: Lnti 0 U 00 Fixed Rate. Option ** a N Series 2011 Note - Bank Qualified" 0 Annual r 3 Term Interest Rate # 0 10 years —fully amortized utilizing Nd 40 Quarterly payments ( see attached amortization) 2. 55% 0 NN v T The Issuer would fully fund the loan on the day we close the loan. The quoted fixed interest rate is contingent upon the Mayor and City Council accepting our proposal by no later than 35 days from the date of this letter. If the Mayor and Council accept our proposal by the stipulated time, we will hold the above referenced fixed interest rate firm, provided that the Note is closed (fully funded) no later than 60 days from the date of this proposal. If the Note is not fully funded within 60 days the interest rate could be higher based on market conditions at the time we close the loan. We have provided an amortization schedule which combines the Component A Equipment and Component B Equipment amortizations for "internal' information purposes, as well as shows the total "combined" amortization schedule for the Note. The City's payment schedule would be equal to the " combined" payment schedule —see attached. 2 iP' 1Ck@t Pg. 69  1 fl.2.a ' '. a City of Fort Walton Beach —Series 2011 Note Page 3 rn c O J iz Interest and Principal Payments: The Note would be payable in quarterly payments (in arrears) with d c the first payment commencing 3 months after the date we close the loan( s). Alternately, if the City R d E would like to start its first payment prior to 3 months after close, we will be glad to work with the City in setting an earlier first payment date. a 0 CL d E H cctas Prepayment Provisions: The principal may be prepaid in whole on any date with 10 days advance J a written notice to the Bank without prepayment penalty. Principal may be prepaid in part on any ti U principal payment date ( each quarterly payment date) with 10 days advance written notice to the Bank without prepayment penalty. In the event of partial prepayment, the loan would be re- amortized, using the remaining principal balance over the remaining term of the original obligation. T 0N O Credit Approval: Already approved. 0 Mm Security: The Loan would be secured by a covenant to budget and appropriate ( CBA) from all legally available non ad valorem revenues of the City, subject only to the payment of debt secured 0N by a lien on specific revenues and the requirement that the City fund essential governmental N r services (the Citywill not otherwise be entitled to fail to budget and appropriate debt service in order to balance its budget). Such covenant to budget and appropriate shall be cumulative to the extent not paid, and shall continue until such non -ad valorem revenues in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Additional Debt: The City would not incur additional debt secured by a lien on all or a portion of the legally available non ad valorem revenues or by a covenant to budget and appropriate unless it shall certify that the legally available non ad valorem revenues, after provision for essential governmental service and payment of all debt secured by all or a portion of the legally available non ad valorem revenues, is no less than 1. 25 times the maximum annual debt service on all debt secured by a covenant to budget and appropriate from legally available non ad valorem revenues, including