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County Administrator's Report 12. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning the Not Exceeding $12,000,000 Escambia County, Florida, Capital Improvement Revenue Note, Series 2013 - Richard Lott, Partner, McGuireWoods LLP
That the Board adopt, and authorize the Chairman to execute, the Resolution authorizing the issuance and sale of a not exceeding $12,000,000 Capital Improvement Revenue Note, Series 2013, approving the loan to the County from STI Institutional & Government, Inc. (the “Lender”), the terms of the loan to the County established therein, and approving the 2013 Project. |
| BACKGROUND: |
| The proposed 2013 Note is to be issued to evidence a bank loan for the purpose of financing or refinancing certain capital improvements of the County. The County’s financial advisor solicited proposals from area banks. The County’s Financial Advisor and staff are recommending the proposal (the “Proposal”) of the Lender, which provides for, among other things, (i) a fixed interest rate of 3.04%, subject to adjustment as more fully described in the Resolution, (ii) a final maturity date of October 1, 2028, (iii) prepayment at the option of the County at par on October 1, 2015, and (iv) other terms as more fully described in the Resolution and the Proposal.
The Note is secured by a covenant by the County to budget and appropriate in its annual budget Non Ad-Valorem Revenues sufficient to pay principal of and interest on the Note and other amounts due under the Resolution. The Note does not constitute a general obligation or a pledge of the full faith and credit of the County.
The Resolution has been prepared by McGuireWoods LLP, the County’s Bond Counsel, and has been reviewed and approved by staff and by the County’s Financial Advisor, First Southwest.
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| BUDGETARY IMPACT: |
| The issuance of the 2013 Note will result in an average annual debt service of approximately $1,008,000.for a period of 15 years. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Documents drafted in connection with the proposed financing are being distributed to the County staff, including the County Attorney’s office for review, comment and approval as they are prepared. The County Attorney will render her opinion as to legality, and the County’s Bond Counsel will render their opinion as to tax-exemption of the Note as a condition of closing. |
| PERSONNEL: |
| None. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The issuance of the 2013 Note will comply with the Board’s requirements for the issuance of County Bonds. |
| IMPLEMENTATION/COORDINATION: |
| Execution by the authorized officers of the Board of the final closing documents will be required at or prior to the closing of the issuance of the Note and the closing for the IHMC Loan.
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