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Home My WebLink About2010 07 26 Consent 205 Approve Resolution 2010-36 Authorizing and Ratifying the City's Refinancing of Oak Forest Assessment Area's Capital Improvement Revenue Note - Series 2004A. COMMISSION AGENDA CONSENT X INFORMATIONAL ITEM 205 PUBLIC HEARING REGULAR July 26, 2010 MGR /DEPT Meeting Authorization REQUEST: The City Manager requests the City Commission consider and approve Resolution No. 2010 -36 Authorizing and Ratifying the City's refinancing of the Oak Forest Assessment Area's Capital Improvement Revenue Note — Series 2004A. SYNOPSIS: Resolution 2010 -36 will establish an internal fund loan in the amount of $318,464.34 from the General Fund to the Oak Forest Debt Service Fund for the purpose of refinancing the Bank of America Capital Improvement Revenue Note, Series 2004, dated November 2004. CONSIDERATIONS: On June 14, 2010 the City Commission approved the refinancing of the Oak Forest Assessment Area's Capital Improvement Revenue Note — Series 2004A (in the amount of $318,464.34). The note was retired on July 1, 2010 in accordance to the lenders (Bank of America) agreement. The attached resolution completes the loan process and formally establishes the loan agreement between the two organizations. FISCAL IMPACT: The loan agreement will save Oak Forest residents an estimated $34,000 interest expense and fees while simultaneously increasing the City's interest revenue by approximately $24,000. COMMUNICATION EFFORTS: Resolution will distributed to the Oak Forest Wall and Beautification District Board at their next scheduled meeting. RECOMMENDATION: It is the recommendation of the City Manager that the City Commission approve Resolution 2010 -36 the refinancing plan for the OFWBD Assessment Area (Capital Improvement Revenue Note, Series 2004A), with an internal note from the City's General Fund Reserve. The debt instrument will be a simple interest loan at the stated rate of 2.75 %, with quarterly installments for the next 7 years (See Attachment `A ), starting on September 30, 2010 and ending June 30, 2017. There will be no prepayment penalties. ATTACHMENTS: Resolution 2010 -36 Schedule A (Loan Repayment Schedule) RESOLUTION NO. 2010 -36 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, PROVIDING FOR A CITY INTERNAL FUND LOAN IN THE AGGREGATE AMOUNT OF $ 310,46434 FROM THE GENERAL FUND TO THE OAK FOREST DEBT SERVICE FUND FOR PURPOSES OF REFINANCING THE BANK OF AMERICA CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2004, DATED NOVEMBER 2004, RELATED TO THE OAK FOREST SPECIAL ASSESSMENT DISTRICT; PROVIDING THAT SAID INTERNAL FUND LOAN SHALL BF REFERRED TO AS THE "OAK FOREST INTERNAL FUND LOAN, 2010 ;" PROVIDING FOR REPAYMENT TERMS AND CONDITIONS OF THE OAK FOREST INTERNAL FUND LOAN, 2010; PROVIDING DIRECTIONS TO THE CITY MANAGER AND FINANCE DIRECTOR; AND PROVIDING FOR REPEAT. OF PRIOR INCONSISTENT RESOLUTION AND AN EFFECTIVE DATE. WHEREAS, the City Commission previously approved the Oak Forest Special Assessment District for purposes of constructing and maintaining certain capital improvements such as a decorative wall and entrance features along the outer perimeter of the Oak Forest Subdivision adjacent to Tuskawilla Road; and WHEREAS, the capital improvements funded by the Oak. Forest assessment were most recently financed by Bank of America, N.A. Capital Improvement Revenue Note, Series 2004, dated November 2004 (the " Note "); and WHEREAS, the City Commission has determined that it would be in the best interests of residents of Oak Forest currently obligated to pay the assessments, and the citizens of Winter Springs in general, to refinance the Note on more favorable terns using an internal fund loan from the City's General Fund to the Oak Forest Debt Service Fund; and WHEREAS, the intent and purpose of this Resolution is to memorialize the authorization to refinance the Note by using an internal fund loan and to set forth the repayment terms and conditions of the internal fund loan: and WHEREAS, the City Commission of Winter Springs hereby finds this Resolution to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. BE IT RESOLVED BY THE CITY COMMISION OF THE CITY OF WINTER SPRINGS, FLORIDA: SECTION 1. RECITALS. The foregoing recitals are hereby deemed true and correct and are hereby fully incorporated herein by this reference. SECTION 2. REFINANCING THE BANK OF AMERICA NOTE. The City Commission hereby authorizes and ratifies the refinancing of the Bank of America, N.A. Capital Improvement Revenue Note, Series 2004, dated November 2004 using the City's general fund reserves to repay said Note under the terms and conditions of the internal fund loan set forth in Section 3 of this Resolution. SECTION 3. ESTABLISHMENT OF THE OAK FOREST INTERNAL FUND LOAN, 2010. The City Commission hereby authorizes a City internal fund loan between the general fund and the Oak Forest Debt Service Fund in the aggregate principle amount of $ 318,464.34 for the purpose of providing the City with sufficient funds to refinance the Note. Said loan shall be referred to as the Oak Forest Internal Fund Loan, 2010. The Oak Forest Internal Fund Loan, 2010 shall bear interest at the annual rate of 2.75% and have a final maturity date of June 30, 2017. The Payment Schedule for the Oak Forest Internal Fund Loan, 2010, is attached hereto and fully incorporated herein as EXHIBIT "A." The Oak Forest Internal Fund Loan, 2010, shall be fully repaid using the special assessments levied by the City pursuant to the Oak Forest Special Assessment Ordinance, as may be amended from time to tiine, to repay the capital improvements financed through the assessment. Said special assessments are hereby deemed pledged for purposes of repaying the Oak Forest Internal Fund Loan, 2010. Upon repayment, the Oak Forest Internal Loan, 2010, shall be deemed expired. The ad valorem taxing power of the City shall not be necessary nor authorized to pay any of the amounts due on the Oak Forest Internal Loan Fund, 2010. The Oak Forest Internal Loan Fund, 2010 shall not be deemed a pledge of the faith and credit or taxing power of the City and such obligations shall not create a lien on any property whatsoever of or situated within the City other than the Oak Forest assessments shall be pledged to repay the Oak Forest Internal Loan, 2010. The City Commission hereby reserves the right to refinance the Oak Forest Internal Fund Loan, 2010, to the extent said refinancing is deemed necessary and in the best interests of the City of Winter Springs. SECTION 4. DIRECTION '1'0 CITY MANAGER AND FINANCE DIRECTOR. The City Commission hereby directs the City Manager and Finance Director to establish the necessary internal budget and accounting tracking procedures deemed necessary to implement the provisions of this Resolution, and to do all acts and things required hereby as may be necessary for the full, punctual and complete performance of all the terrns, covenants, provisions and agreements herein contained. or as otherwise may be necessary or desirable to effectuate the purpose and intent of this Resolution . SECTION 5. REPEAL OF PRIOR INCONSISTENT RESOLUTIONS. All prior resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. SECTION 6. EFFECTIVE DATE. Upon approval of this Resolution by the City Commission, this Resolution be deemed effective retroactively as ofJuly 1, 2010. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a Regular Meeting duly assembled on the 20 day ofJuly, 2010. In witness whereof, 1 have hereunto set my hand and caused this seal to be affixed. JOHN F. BUSH, Mayor ATTEST: ANDREA LORENZO-LUACES, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs, Florida only: ANTHONY A. GARGANESE, City Attorney 2.750% Annual Rate Schedule A $ 318,464.34 Total Principle 28 Number of Payments Payment # Quarter Fiscal Year Payment Interest Principle Balance Per Year Sep -30 1 1 2030 $ - $ - $ - $ 318,464.34 $ - 31-Dec-10 2 2 $ 13,000.00 $ 2,189.44 $ 10,810.56 $ 307,653.78 Mar -11 3 1 $ 13,000.00 $ 2,115.12 $ 10,884.88 $ 296,768.90 30- Jun -11 4 2 $ 13,000.00 $ 2,040.29 $ 10,959.71 $ 285,809.19 Sep -11 5 3 $ 13,000.00 $ 1,964.94 $ 11,035.06 $ 274,774.13 $ 52,000.00 31- Dec -11 6 4. r $ 13,000.00 $ 1,889.07 $ 11,110.93 $ 263,663.20 Mar -12 7 1 $ 13,000.00 $ 1,812.68 $ 11,187.32 $ 252,475.88 30- Jun -12 8 2' ;, $ 13,000.00 $ 1,735.77 $ 11,264.23 $ 241,211.65 $ 52,000.00 Sep -12 9 3 , $ 13,000.00 $ 1,658.33 $ 11,341.67 $ 229,869.98 31- Dec -12 10 4 s , $ 13,000.00 $ 1,580.36 $ 11,419.64 $ 218,450.34 Mar -13 11 1 F him �� < $ 13,000.00 $ 1,501.85 $ 11,498.15 $ 206,952.19 30- Jun -13 12 2 6 $ 13,000.00 $ 1,422.80 $ 11,577.20 $ 195,374.98 $ 52,000.00 Sep -13 13 3 $ 13,000.00 $ 1,343.20 $ 11,656.80 $ 183,718.19 31- Dec -13 14 4 2014 $ 13,000.00 $ 1,263.06 $ 11,736.94 $ 171,981.25 Mar -14 15 1 _', $ 13,000.00 $ 1,182.37 $ 11,817.63 $ 160,163.62 30- Jun -14 16 2 $ 13,000.00 $ 1,101.12 $ 11,898.88 $ 148,264.74 $ 52,000.00 Sep -14 17 3 $ 13,000.00 $ 1,019.32 $ 11,980.68 $ 136,284.07 31- Dec -14 18 4 $ 13,000.00 $ 936.95 $ 12,063.05 $ 124,221.02 Mar -15 19 1 $ 13,000.00 $ 854.02 $ 12,145.98 $ 112,075.04 30- Jun -15 20 2 $ 13,000.00 $ 770.52 $ 12,229.48 $ 99,845.55 $ 52,000.00 Sep -15 21 3 $ 13,000.00 $ 686.44 $ 12,313.56 $ 87,531.99 31- Dec -15 22 4 $ 13,000.00 $ 601.78 $ 12,398.22 $ 75,133.77 Mar -16 23 1 $ 13,000.00 $ 516.54 $ 12,483.46 $ 62,650.32 30- Jun -16 24 2 $ 13,000.00 $ 430.72 $ 12,569.28 $ 50,081.04 $ 52,000.00 Sep -16 25 3 $ 13,000.00 $ 344.31 $ 12,655.69 $ 37,425.35 31- Dec -16 26 4 3 ' $ 13,000.00 $ 257.30 $ 12,742.70 $ 24,682.65 Mar -17 27 1 $ 13,000.00 $ 169.69 $ 12,830.31 $ 11,852.34 30- Jun -17 28 2 $ 11,933.82 $ 81.48 $ 11,852.34 $ 37,933.82 $ 31,469.48 $ 318,464.34 RESOLUTION NO. 2010 -36 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, PROVIDING FOR A CITY INTERNAL FUND LOAN IN THE AGGREGATE AMOUNT OF $ 318,464.34 FROM THE GENERAL FUND TO THE OAK FOREST DEBT SERVICE FUND FOR PURPOSES OF REFINANCING THE BANK OF AMERICA CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2004, DATED NOVEMBER 2004, RELATED TO THE OAK FOREST SPECIAL ASSESSMENT DISTRICT; PROVIDING THAT SAID INTERNAL FUND LOAN SHALL BE REFERRED TO AS THE "OAK FOREST INTERNAL FUND LOAN, 2010;" PROVIDING FOR REPAYMENT TERMS AND CONDITIONS OF THE OAK FOREST INTERNAL FUND LOAN, 2010; PROVIDING DIRECTIONS TO THE CITY MANAGER AND FINANCE DIRECTOR; AND PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTION AND AN EFFECTIVE DATE. WHEREAS, the . City Commission previously approved the Oak Forest Special Assessment District for purposes of constructing and maintaining certain capital improvements such as a decorative wall and entrance features along the outer perimeter of the Oak Forest Subdivision adjacent to Tuskawilla Road; and WHEREAS, the capital improvements funded by the Oak Forest assessment were most recently financed by Bank of America, N.A. Capital Improvement Revenue Note, Series 2004, dated November 2004 (the " Note"); and WIIEREAS, the City Commission has determined that it would be in the best interests of residents of Oak Forest currently obligated to pay the assessments, and the citizens of Winter Springs in general, to refinance the Note on more favorable terms using an internal fund loan from the City's General Fund to the Oak Forest Debt Service Fund; and WHEREAS, the intent and purpose of this Resolution is to memorialize the authorization to refinance the Note by using an internal fund loan and to set forth the repayment terms and conditions of the internal fund loan; and WIIEREAS, the City Commission of Winter Springs hereby finds this Resolution to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. BE IT RESOLVED BY THE CITY COMMISION OF THE CITY OF WINTER SPRINGS, FLORIDA: SECTION 1. RECITALS. The foregoing recitals are hereby deemed true and correct and are hereby fully incorporated herein by this reference. SECTION 2. REFINANCING THE BANK OF AMERICA NOTE. The City Commission hereby authorizes and ratifies the refinancing of the Bank of America, N.A. Capital Improvement Revenue Note. Series 2004, dated November 2004 using the City's general fund reserves to repay said Note under the terms and conditions of the internal fund loan set forth in Section 3 of this Resolution. SECTION 3. ESTABLISHMENT OF THE OAK FOREST INTERNAL FUND LOAN, 2010. The City Commission hereby authorizes a City internal fund loan between the general fund and the Oak Forest Debt Service Fund in the aggregate principle amount of $ 318,464.34 for the purpose of providing the City with sufficient funds to refinance the Note. Said loan shall be referred to as the Oak Forest Internal Fund Loan, 2010. The Oak Forest Internal Fund Loan, 2010 shall bear interest at the annual rate of 2.75% and have a final maturity date of June 30, 2017. The Payment Schedule for the Oak Forest Internal Fund Loan, 2010, is attached hereto and fhlly incorporated herein as EXHIBIT "A." The Oak Forest Internal Fund Loan, 2010, shall be fully repaid using the special assessments levied by the City pursuant to the Oak Forest Special Assessment Ordinance, as may be amended from time to time, to repay the capital improvements financed through the assessment. Said special assessments are hereby deemed pledged for purposes of repaying the Oak Forest Internal Fund Loan, 2010. Upon repayment, the Oak Forest Internal Loan, 2010, shall be deemed expired. The ad valorem taxing power of the City shall not be necessary nor authorized to pay any of the amounts due on the Oak Forest Internal Loan Fund, 2010. The Oak Forest Internal Loan Fund, 2010 shall not be deemed a pledge of the faith and credit or taxing power of the City and such obligations shall not create a lien on any property whatsoever of or situated within the City other than the Oak Forest assessments shall be pledged to repay the Oak Forest Internal Loan, 2010. The City Commission hereby reserves the right to refinance the Oak Forest Internal Fund Loan, 2010, to the extent said refinancing is deemed necessary and in the best interests of the City of Winter Springs. SECTION 4. DIRECTION TO CITY MANAGER AND FINANCE DIRECTOR. The City Commission hereby directs the City Manager and Finance Director to establish the necessary internal budget and accounting tracking procedures deemed necessary to implement the provisions of this Resolution, and to do all acts and things required hereby as may be necessary for the full, punctual and complete performance of all the terms, covenants, provisions and agreements herein contained, or as otherwise may be necessary or desirable to effectuate the purpose and intent of this Resolution . SECTION 5. REPEAL OF PRIOR INCONSISTENT RESOLUTIONS. All prior resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. SECTION 6. EFFECTIVE DATE. Upon approval of this Resolution by the City Commission, this Resolution be deemed effective retroactively as ofJuly I, 2010. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a Regular Meeting duly assembled on the 26 day ofJuly, 2010. In witness whereof*, I have hereunto set my hand and caused this seal to be affixed. JOH F. BUSH, Mayor ATTEST: ANDREA LORENZO-LUACES, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs, Florida only: /eFie ANTHONY A. GARCANESE, City Attorney 2.750% Annual Rate Schedule A $ 318,464.34 Total Principle 28 Number of Payments Payment # Quarter Fiscal Year Payment Interest Principle Balance Per Year Sep -30 1 1 2030 $ - $ - $ - $ 318,464.34 $ - 31-Dec-10 2 2 $ 13,000.00 $ 2,189.44 $ 10,810.56 $ 307,653.78 Mar -11 3 1 $ 13,000.00 $ 2,115.12 $ 10,884.88 $ 296,768.90 30- Jun -11 4 2 $ 13,000.00 $ 2,040.29 $ 10,959.71 $ 285,809.19 Sep -11 5 3 $ 13,000.00 $ 1,964.94 $ 11,035.06 $ 274,774.13 $ 52,000.00 31- Dec -11 6 4. r $ 13,000.00 $ 1,889.07 $ 11,110.93 $ 263,663.20 Mar -12 7 1 $ 13,000.00 $ 1,812.68 $ 11,187.32 $ 252,475.88 30- Jun -12 8 2' ;, $ 13,000.00 $ 1,735.77 $ 11,264.23 $ 241,211.65 $ 52,000.00 Sep -12 9 3 , $ 13,000.00 $ 1,658.33 $ 11,341.67 $ 229,869.98 31- Dec -12 10 4 s , $ 13,000.00 $ 1,580.36 $ 11,419.64 $ 218,450.34 Mar -13 11 1 F him �� < $ 13,000.00 $ 1,501.85 $ 11,498.15 $ 206,952.19 30- Jun -13 12 2 6 $ 13,000.00 $ 1,422.80 $ 11,577.20 $ 195,374.98 $ 52,000.00 Sep -13 13 3 $ 13,000.00 $ 1,343.20 $ 11,656.80 $ 183,718.19 31- Dec -13 14 4 2014 $ 13,000.00 $ 1,263.06 $ 11,736.94 $ 171,981.25 Mar -14 15 1 _', $ 13,000.00 $ 1,182.37 $ 11,817.63 $ 160,163.62 30- Jun -14 16 2 $ 13,000.00 $ 1,101.12 $ 11,898.88 $ 148,264.74 $ 52,000.00 Sep -14 17 3 $ 13,000.00 $ 1,019.32 $ 11,980.68 $ 136,284.07 31- Dec -14 18 4 $ 13,000.00 $ 936.95 $ 12,063.05 $ 124,221.02 Mar -15 19 1 $ 13,000.00 $ 854.02 $ 12,145.98 $ 112,075.04 30- Jun -15 20 2 $ 13,000.00 $ 770.52 $ 12,229.48 $ 99,845.55 $ 52,000.00 Sep -15 21 3 $ 13,000.00 $ 686.44 $ 12,313.56 $ 87,531.99 31- Dec -15 22 4 $ 13,000.00 $ 601.78 $ 12,398.22 $ 75,133.77 Mar -16 23 1 $ 13,000.00 $ 516.54 $ 12,483.46 $ 62,650.32 30- Jun -16 24 2 $ 13,000.00 $ 430.72 $ 12,569.28 $ 50,081.04 $ 52,000.00 Sep -16 25 3 $ 13,000.00 $ 344.31 $ 12,655.69 $ 37,425.35 31- Dec -16 26 4 3 ' $ 13,000.00 $ 257.30 $ 12,742.70 $ 24,682.65 Mar -17 27 1 $ 13,000.00 $ 169.69 $ 12,830.31 $ 11,852.34 30- Jun -17 28 2 $ 11,933.82 $ 81.48 $ 11,852.34 $ 37,933.82 $ 31,469.48 $ 318,464.34