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<br />Preview <br /> <br />Page 1 of2 <br /> <br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3113 Fax <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />The Honorable Mayor and City Commission <br /> <br />FROM: <br /> <br />Minai Shah, Assistant City Manager-Finance <br /> <br />DATE: <br /> <br />7/27/2010 <br /> <br />RE: <br /> <br />Ordinance Authorizing the Issuance of a Stormwater Utility Revenue <br />Bond, Series 2010, in a Principal Amount of $3.5 Million <br /> <br />RECOMMENDATION: <br /> <br />Please approve the ordinance and loan documents with BB&T for a $3.5 Million fixed <br />rate loan to be repaid over 15 years and at an interest rate of 4,02%. This rate is locked <br />for 45 days from June 30, 2010. <br /> <br />This loan will be repaid from legally available non ad valorem revenues in the <br />Stormwater Fund, The loan can be repaid early but is subject to penalty provisions of the <br />agreement which may be triggered depending upon current market interest rates at the <br />time of prepayment. Payments will be made quarterly, beginning November 1,2010. The <br />total annual debt service will be approximately $312,000. Proceeds from the loan will be <br />used for the payment of the loan from the Capital Improvements Fund for the drainage <br />improvements and future Storm water improvements. <br /> <br />The loan documents will require to be executed after the second ordinance reading. A <br />special meeting will be scheduled for the second reading, The closing and settlement <br />will occur shortly thereafter. <br /> <br />REASONS: <br /> <br />HISTORY: <br /> <br />During the fiscal year 2008/2009, the City incurred an expense of approximately <br />$7.3 million for the Central Island Drainage project. This project required the <br />Stormwater Fund to borrow $2,555,863 from the Capital Improvement Fund. On April <br />15, 2010 Commission Meeting, the City presented an aggressive payback schedule <br />between the Storm water Fund and the Capital Improvement Fund. During the <br />discussion of this item Commission requested that we seek an external financing source <br />for these expenses. <br /> <br />Agenda Item <br /> <br />3/1 <br />7- 7.., 7- I D <br /> <br />http://sibagenda.sibfl.net/agendaJPreview,aspx?ItemID=313&MeetingID Date <br />