Fort Walton Beach Resolution — 2026-02 Authorizing Issuance of Revenue Note-Preston Hood Expansion Loan $7,500,000 — reading text

RESOLUTION 2026- 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA( THE " CITY") AUTHORIZING THE ISSUANCE BY THE CITY OF A NOT TO EXCEED $7, 500, 000 PRINCIPAL AMOUNT CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2026, TO PROVIDE FUNDS TO FINANCE AN EXPANSION TO THE CITY' S RECREATION CENTER AND PAY ALL OR A PORTION OF THE COSTS ASSOCIATED WITH THE ISSUANCE OF SUCH NOTE; ACCEPTING THE PROPOSAL OF WEBSTER PUBLIC FINANCE CORPORATION TO PURCHASE SUCH NOTE PURSUANT TO A NEGOTIATED PRIVATE PLACEMENT; AUTHORIZING THE EXECUTION AND DELIVERY AND THE SUBSTANTIALLY FINAL FORM OF A LOAN AGREEMENT BETWEEN THE CITY AND WEBSTER PUBLIC FINANCE CORPORATION; COVENANTING TO BUDGET AND APPROPRIATE LEGALLY AVAILABLE NON-AD VALOREM FUNDS TO PAY THE NOTE; RATIFYING CERTAIN ACTIONS TAKEN PRIOR TO THE DATE HEREOF WITH RESPECT TO THE REQUEST FOR PROPOSALS FROM PROSPECTIVE PURCHASERS OF THE NOTE; DELEGATING CERTAIN AUTHORITY TO THE MAYOR, MAYOR PRO- TEM, CITY MANAGER, CITY CLERK, OTHER OFFICERS OF THE CITY, CITY STAFF AND OTHER REPRESENTATIVES OF THE CITY IN CONNECTION WITH THE ISSUANCE OF THE NOTE; PROVIDING FOR REPEAL OF INCONSISTENT PROVISIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, THAT: Section 1. Authority for this Resolution. This resolution is enacted pursuant to the provisions of Chapter 166, Florida Statutes, the City Charter and other applicable provisions of law. Section 2. Findings. It is hereby ascertained, determined and declared that: A. On November 17, 2025, the City of Fort Walton Beach, Florida ( the " City") requested proposals ( the " Request for Proposals") to provide the City with the necessary funds ( the " Loan") to finance an expansion of the City' s Recreation Center ( the " Project") and pay all or a portion of the costs associated with such Loan. B. On or prior to December 16, 2025, certain interested parties submitted their proposals to the City. On January 27, 2026, upon the recommendation of the City's financial advisor, PFM Financial Advisors LLC, Bond Counsel, Nabors, Giblin & Nickerson, P. A., and City staff, the City accepted the proposal ( the " Proposal") of Webster Public Finance Corporation ( the " Lender").  RESOLUTION 2026- 2 C. It is necessary and desirable and in the City's best interest to provide for the execution and delivery of a Loan Agreement ( the " Loan Agreement") with the Lender, and the issuance by the City of its Capital Improvement Revenue Note, Series 2026 ( the " Note"), to implement the Loan. Amounts due under the Loan Agreement and the Note shall be payable from non-ad valorem revenues of the City budgeted and appropriated from legally available non-ad valorem funds each year, such monies being sufficient to pay the principal and interest on the Note in accordance with the terms of the Loan Agreement. D. In accordance with the provisions of Part III, Chapter 218, Florida Statutes, a negotiated sale and private placement of the Note to the Lender in accordance with the terms of the Proposal is in the best interest of the City because of the flexibility available in a private placement in structuring the Note and its terms in a volatile market for tax exempt obligations. Section 3. Ratification of Prior Actions. On January 27, 2026, the City accepted the Proposal of the Lender to provide the City with a not to exceed $ 7, 500,000 term loan. All actions taken by the City's staff, the City's financial advisor and the City's bond counsel with respect to the Request for Proposals and the Proposal prior to the date thereof and the date hereof in connection with the Request for Proposals and the Loan are hereby ratified and approved. Section 4. Authorizing and Award of Note. The issuance by the City of a not to exceed $ 7, 500, 000 principal amount Capital Improvement Revenue Note, Series 2026, to secure the repayment of the Loan in accordance with the terms of the Loan Agreement, to bear interest at a rate determined in accordance with the provisions of the Proposal and not exceeding the maximum legal rate per annum, to be payable, to mature, to be subject to prepayment and to have such other characteristics as are provided in the Loan Agreement; and secured by a covenant of the City to budget and appropriate from legally available non-ad valorem funds each year monies sufficient to pay the principal and interest on the Note as set forth in the Loan Agreement, is hereby authorized and approved. Section 5. Approval of Loan Agreement and Note. The Loan Agreement, in the form attached hereto as Exhibit A, and the Note, in the form attached to the Loan Agreement, are each hereby approved in substantially final form, with such modifications as may be approved by the  RESOLUTION 2026- 2 Mayor, or in his absence or unavailability, the Mayor Pro- Tem, in order to comply with the provisions of the Proposal, including, without limitation, a modification of the principal amount thereof ( not to exceed $ 7, 500, 000), such approval to be conclusively determined by his execution thereof and the execution and delivery thereof by the Mayor or Mayor Pro- Tem and the City Clerk, ( or any designated Deputy City Clerk) who are all hereby authorized to execute and deliver such instruments and to take such other actions as shall be necessary to implement the Loan upon the advice of the City's financial advisor, the office of the City Attorney and the City's bond counsel. Section 6. Authorization of Project; General Authorization. The Mayor, or in his absence or unavailability, the Mayor Pro- Tem, City Manager, City Attorney, City Clerk ( or any designated Deputy City Clerk), City staff, the City's financial advisor and the City's bond counsel, are each hereby authorized to take all action necessary in connection with the financing of the Project, the issuance of the Note and the execution and delivery of the Loan Agreement and the other documents, certificates and opinions related thereto. Such parties are additionally hereby authorized to take any other action necessary or required in connection with the issuance of the Note. Section 7. Repeal of Inconsistent Provisions. All resolutions or parts thereof in conflict with this Resolution are hereby repealed to the extent of such conflict. Section 8. _ Severability. In the event that any portion or section of this Resolution is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Resolution shall remain in full force and effect Section 9. Effective Date. This Resolution shall take effect immediately upon approval by the City Council.  RESOLUTION 2026- 2 Adopted: Januar ; - o: 1_- V is Allegrett., , : , or Attest: Approved .: to 1: gal form and sufficiency for the C ail Walton Beach, only_ rn- oK Ki . Barnes, City Clerk Jeffrey L. ' rs, City Attorney it s1  EXECUTION COPY RESOLUTION NO. 2026- 02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA (THE " CITY") AUTHORIZING THE ISSUANCE BY THE CITY OF A NOT TO EXCEED $7, 500, 000 PRINCIPAL AMOUNT CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2026, TO PROVIDE FUNDS TO FINANCE AN EXPANSION TO THE CITY' S RECREATION CENTER AND PAY ALL OR A PORTION OF THE COSTS ASSOCIATED WITH THE ISSUANCE OF SUCH NOTE; ACCEPTING THE PROPOSAL OF WEBSTER PUBLIC FINANCE CORPORATION TO PURCHASE SUCH NOTE PURSUANT TO A NEGOTIATED PRIVATE PLACEMENT; AUTHORIZING THE EXECUTION AND DELIVERY AND THE SUBSTANTIALLY FINAL FORM OF A LOAN AGREEMENT BETWEEN THE CITY AND WEBSTER PUBLIC FINANCE CORPORATION; COVENANTING TO BUDGET AND APPROPRIATE LEGALLY AVAILABLE NON-AD VALOREM FUNDS TO PAY THE NOTE; RATIFYING CERTAIN ACTIONS TAKEN PRIOR TO THE DATE HEREOF WITH RESPECT TO THE REQUEST FOR PROPOSALS FROM PROSPECTIVE PURCHASERS OF THE NOTE; DELEGATING CERTAIN AUTHORITY TO THE MAYOR, MAYOR PRO- TEM, CITY MANAGER, CITY CLERK, OTHER OFFICERS OF THE CITY, CITY STAFF AND OTHER REPRESENTATIVES OF THE CITY IN CONNECTION WITH THE ISSUANCE OF THE NOTE; PROVIDING FOR REPEAL OF INCONSISTENT PROVISIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, THAT: Section 1. Authority for this Resolution. This resolution is enacted pursuant to the provisions of Chapter 166, Florida Statutes, the City Charter and other applicable provisions of law. Section 2. Findings. It is hereby ascertained, determined and declared that:  A. On November 17, 2025, the City of Fort Walton Beach, Florida (the City") requested proposals ( the " Request for Proposals")to provide the City with the necessary funds ( the " Loan") to finance an expansion of the City' s Recreation Center( the" Project") and pay all or a portion ofthe costs associated with such Loan. B. On or prior to December 16, 2025, certain interested parties submitted their proposals to the City. On January 27, 2026, upon the recommendation of the City's financial advisor, PFM Financial Advisors LLC, Bond Counsel, Nabors, Giblin & Nickerson, P. A., and City staff, the City accepted the proposal ( the Proposal") of Webster Public Finance Corporation( the " Lender"). C. It is necessary and desirable and in the City's best interest to provide for the execution and delivery of a Loan Agreement ( the " Loan Agreement") with the Lender, and the issuance by the City of its Capital Improvement Revenue Note, Series 2026 ( the " Note"), to implement the Loan. Amounts due under the Loan Agreement and the Note shall be payable from non-ad valorem revenues of the City budgeted and appropriated from legally available non-ad valorem funds each year, such monies being sufficient to pay the principal and interest on the Note in accordance with the terms of the Loan Agreement. D. In accordance with the provisions of Part III, Chapter 218, Florida Statutes, a negotiated sale and private placement of the Note to the Lender in accordance with the terms of the Proposal is in the best interest of the City because of the flexibility available in a private placement in structuring the Note and its terms in a volatile market for tax exempt obligations. Section 3. Ratification of Prior Actions. On January 27, 2026, the City accepted the Proposal of the