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CASSCLBERRY CITY COMMISSION Minutes of November 16, 2020 — Regular Meeting Page 9 of 22 AGREEMENTS IN CONNECTION WITH THE ISSUANCE AND SALE OF THE SERIES 2020 BOND; AUTHORIZING A NEGOTIATED SALE OF SAID SERIES 2020 BOND TO STI INSTITUTIONAL & GOVERNMENT, INC.; DELEGATING CERTAIN AUTHORITY TO THE MAYOR; PROVIDING FOR CERTAIN TERMS OF THE SERIES 2020 BOND; AUTHORIZING THE EXECUTION AND DELIVERY OF THE SERIES 2020 BOND, SUCH SERIES 2020 BOND TO BE A LIMITED OBLIGATION OF THE CITY PAYABLE FROM A COVENANT TO BUDGET AND APPROPRIATE FROM LEGALLY AVAILABLE NON -AD VALOREM REVENUES AS PLEDGED HEREIN; PROVIDING FOR THE RIGHTS AND SECURITIES OF THE OWNER OF THE SERIES 2020 BOND; MAKING CERTAIN COVENANTS AND AGREEMENTS FOR THE BENEFIT OF THE PURCHASER OF THE SERIES 2020 BOND; APPOINTING THE CITY AS PAYING AGENT AND BOND REGISTRAR FOR SAID SERIES 2020 BOND; AND PROVIDING AN EFFECTIVE DATE." Staff Presentation: City Manager Randy Newlon stated that Resolution 20-3210 provides for a bond issuance identified as "City of Casselberry Capital Improvement Revenue Bond, Series 2020" in the aggregate principal amount of $15,679,481. Budget Amendment #21-009 is provided to recognize the costs of issuance and true up of budgeted debt proceeds. Through the City's advisors Dunlap and Associates the City put out requests to financial institutions for offers to bond this money. From the offers received and considered, Dunlap and Associates recommended the bond be assigned to Truist, the successor bank to Sun Trust and BB&T, and then Truist assigned the bond to a subsidiary, STI International Institutional and Government Inc. An offer was made by STI International Institutional and Government for a 25 -year amortization at 2.07% per year, guaranteed through 15 years, with a "put" date at the end of 15 years. At that time, the City would either have to refinance at the current rate, or the loan would be extended at the original rate past the first "put" date to a second one in five years. Mr. Newlon explained that this process is routine and usual, and the City would still be paying off the loan over 25 years at historically low interest rates. The balance of the loan is $15.7 million, which includes some closing costs, but focuses on the cost of the Guaranteed Maximum Price (GMP) and the additional attorney oversight fees. The adopted budget for Fiscal Year 2021 includes a budget to receive $16 million in debt proceeds for this project, but since the City is not seeking the $16 million amount, Budget Amendment #21-009 reduces that budget to match the actual amount of the loan in order to true up the 2021 FY Budget. Mr. Newlon thanked staff, the consultants and the Finance Department for their work on coordinating the financial details of the bond. In response to questions from the City Commission regarding the difference in the proposed square footage for the project now from the 2015 visioning workshop which was approximately 4,000 square feet less than what is being proposed, Public Works Director Mark Gisclar explained that the project had evolved from concept to actual design and the plan presented at the visioning workshop was conceptual only. Once the new architect and the Construction Manager at Risk (CMAR) programmed the actual space that was needed in order to be adequate and allow for some growth over the next 20-30 years, it came to the square footage now being proposed. Budget Impact: Approval of Budget Amendment #21-009 will increase the Debt Service Fund Other Debt Service Cost account #305-0190-517.73-00 in the amount of $79,000 and decrease Capital Improvement Fund Building Improvement accounts #305-0190-519.62-25 in the amount of $193,327, #305-0190- 536.62-25 in the amount of $141,750, #305-0740-538.62-25 in the amount of $64,442 and Debt Proceeds account #305-0000-384.00-00 in the amount of $320,519. Sufficient funds for the capital costs related to the City's Public Works Facility and other capital costs have been budgeted in various capital accounts within the Capital Improvement Fund.