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CASSELBERRY CITY COMMISSION Minutes of August 24, 2015 — Regular Meeting Page 12 of 20 11. RESOLUTIONS A. Resolution 15-2777— Issuance of Infrastructure Surtax Revenue Bond Series 2015 in the amount of $9,894,000 and Related Bud1zet Amendment #15 -054 The City Clerk read Resolution 15 -2777 by title as follows: "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CASSELBERRY, FLORIDA, AUTHORIZING THE ISSUANCE BY THE CITY OF NOT TO EXCEED $9,894,000 IN AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF CASSELBERRY, FLORIDA INFRASTRUCTURE SALES SURTAX REVENUE BOND, SERIES 2015 TO FINANCE AND REFINANCE THE CONSTRUCTION OF CERTAIN CAPITAL IMPROVEMENTS IN AND FOR THE CITY; PLEDGING THE PROCEEDS OF THE LOCAL GOVERNMENT INFRASTRUCTURE SURTAX RECEIVED BY THE CITY TO SECURE PAYMENT OF THE PRINCIPAL, INTEREST AND PREMIUM, IF ANY, ON SAID BONDS; PROVIDING A SUPPLEMENTAL COVENANT TO BUDGET AND APPROPRIATE LAWFULLY AVAILABLE NON -AD VALOREM REVENUES OF THE CITY SUFFICIENT TO PAY PRINCIPAL OF, REDEMPTION PREMIUM, IF ANY, AND INTEREST ON THE BONDS; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AUTHORIZING A PRIVATE PLACEMENT AND NEGOTIATED SALE OF SUCH BONDS WITH WHITNEY BANK DB /A HANCOCK BANK; APPROVING THE REGISTRAR AND PAYING AGENT FOR THE BONDS; DESIGNATING THE SERIES 2015 BOND AS A QUALIFIED TAX - EXEMPT OBLIGATION PURSUANT TO SECTION 265(B)(3) OF THE INTERNAL REVENUE CODE; PROVIDING FOR CERTAIN ADDITIONAL MATTERS IN RESPECT OF SAID BONDS; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE." Staff Presentation: Finance Director Rebecca Bowman explained that Resolution 15 -2777 provides for issuance of infrastructure sales surtax revenue bond which is designated as Series 2015 in the amount of $9,894,000 and that through the adoption of Ordinance 15 -1428 the City Commission was provided with the authority to issue the bonds. She further explained that pursuant to instruction, staff had sought proposals for the issuance of a bond and it had been determined that Hancock Bank was the most favorable bank with the best interest rate and it would be a 10 -year issuance. She advised that if Resolution 15 -2777 was approved, the City would be issuing bonds in the amount of $9,894,000. In response to questions from Mr. Newlon and the Commission, Ms. Bowman clarified that the duration of the payback period for the bond would be approximately the same as the duration of the infrastructure surtax until sunset. She also advised that if approved, this would be a private placement with Hancock Bank and would be just one issuance, not a series of bonds to be issued, and that the interest rate for the bond would be 1.85 %. Audience Participation: No one came forward to address Resolution 15 -2777 or associated Budget Amendment 15 -054. Budget Impact: Approval of Budget Amendment #15-054 will increase the Infrastructure Surtax Fund Debt Proceeds account Al 14-0000-3 84.00 -00 in the amount of $9,894,000, Other Debt Service Costs account #114- 0190- 517.73 -00 in the amount of $55,000, and decrease Other Non - operating Sources account #114 -0000- 389.90 in the amount of $9,839,000.