 |  | 5919 MAIN STREET . NEW PORT RICHEY, FL 34652 . 727.853.1016 |
| TO: | City of New Port Richey City Council | | FROM: | Crystal S. Feast, Finance Director | | DATE: | 10/20/2020 | | RE: | First Reading, Ordinance No. 2020-2213: Authorize the Issuance of Taxable & Tax Exempt Revenue Notes |
REQUEST:
The City Council is asked to conduct a first reading of Ordinance No. 2020-2213, which would authorize the issuance of Non-Ad Valorem Revenue Notes in one or more series, not to exceed $11,000,000 to finance the cost of construction, renovation, and equipping of 3 capital projects: Parking Garage Structure, Construction of Fire Station No. 2, and Library Renovations.
DISCUSSION:
Consistent with the strategy laid out in the City’s FY20-21 CRA Budget, action has been taken to move forward with the financing of the construction of a parking garage in the City’s downtown. After going through the RFP process and receiving such favorable interest rates, city staff determined that it would be advantageous to add the library renovations and the construction of Fire Station No. 2 to the financing package. Originally, city staff tried to fund the library renovations through a USDA loan. However, based on discussions with USDA and past history of working with them, the process for securing a loan is quite complex and lengthy and interest rates will most likely not be as favorable as they are currently. City staff applied for a Community Development Block Grant (CDBG) to fund the construction of Fire Station No. 2. If awarded, the City will use the grant proceeds to repay a portion of the Revenue Note without prepayment penalty.
Summary of Financing:
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$6,500,000 – Parking Garage
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2,400,000 – Construction of Fire Station No. 2
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2,000,000 – Library Renovations
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100,000 – Issuance Costs
$11,000,000
The CRA would be responsible for repaying the portion of the Revenue Note that finances the construction of the parking garage. The City will repay the portion of the Revenue Notes that finances the construction of Fire Station No. 2 and the library renovations using Penny for Pasco dollars.
A representative from Ford & Associates, Inc., the City’s Financial Advisor, will present a summary of the City’s plan to finance these transactions, which includes the issuance of the aforementioned Revenue Notes and the RFP process the City went through to obtaining financing.
Bryant Miller Olive, the City’s Bond Counsel, has drafted the Ordinance before you, which authorizes the issuance of the Non-Ad Valorem Revenue Notes. A representative will discuss key provisions within the Ordinance.
RECOMMENDATION:
It is recommended that the City Council conduct a first reading of and approve Ordinance No. 2020-2213, which would authorize the issuance of Non-Ad Valorem Revenue Notes in one or more series, not to exceed $11,000,000.
BUDGET/FISCAL IMPACT:
No budget or fiscal impact related to the first reading of this Ordinance. Any future costs pertaining to this transaction will be paid from the proceeds of the Revenue Notes. A budget amendment will be prepared once proceeds are received. | | | |