Title
A RESOLUTION AUTHORIZING THE STRUCTURE AND OFFERING OF GENERAL OBLIGATION WARRANTS, SERIES 2019
Summary
Mike Thompson: Requesting to move forward on refinance of the PFCD's 2009 revenue bonds on the City's 2009 GO bonds to take advantage of current low rates.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FOLEY, ALABAMA, as follows:
Section 1. The City Council (the “City Council”) of the City of Foley, Alabama (the “City”) has found and determined, and does hereby find, determine and declare, as follows:
(a) The City has heretofore issued and delivered the following obligations (collectively, the “Series 2009 Obligations”):
(i) General Obligation Warrants, Series 2009, of the City;
(ii) Lease Agreement dated September 1, 2009 by The City of Foley Public Facilities Cooperative District (the “District”), as lessor, and the City, as lessee, with respect to certain property financed by the Revenue Bonds, Series 2009, of the District.
(b) The City is not in default with respect to the Series 2009 Obligations and no such default is imminent.
(c) The City may realize net interest cost savings by the refunding of the Series 2009 Obligations.
(d) It is necessary, desirable and in the public interest for the City to authorize the structure and offering to the public markets of general obligation warrants of the City, on a tax-exempt basis and of series designation “2019,” on the conditions of this Resolution to provide for the refunding of the Series 2009 Obligations.
Section 2. The City does hereby approve, adopt, authorize, direct, ratify and confirm:
(a) the engagement of Stifel, Nicolaus & Company, Incorporated, as underwriter (the “Underwriter”) for the determination of the principal amounts, terms of maturity and payment, interest rates, offering prices, redemption provisions, structure, and sources of payment of the Series 2019 Warrants by the Underwriter;
(b) the engagement of Maynard, Cooper & Gale, PC, as bond counsel, for the preparation of the financing and disclosure documents for the Series 2019 Warrants by such bond counsel;
(c) the distribution by the Underwriter of a preliminary official statement with respect to the Series 2019 Warrants, on behalf of the City, upon completion by the City;
Section 3. Subject to Section 4 hereof, the Mayor of the City is hereby authorized and directed to execute and deliver a warrant purchase agreement with respect to the Series 2019 Warrants for and in the name of the City.
Section 4. The issuance and sale of the Series 2019 Warrants shall:
(a) be made upon the condition the refunding shall achieve a net present value debt service savings for the City;
(b) be subject to the final approval and authorization thereof by the City Council, including without limitation the purposes, use of proceeds, principal amounts, terms of maturity and payment dates, interest rates, offering prices, redemption prices and terms, and costs of issuance and credit enhancement, if any;
(c) be subject to the approving legal opinion of Maynard, Cooper & Gale, P.C., as bond counsel.
Section 5. If it becomes necessary for the City to expend any funds for capital improvements, which the City determines to finance by the proceeds of the Series 2019 Warrants, prior to the issuance of the Series 2019 Warrants, the City hereby declares its official intent that (i) proceeds of such Warrants be used to reimburse the City for capital expenditures made by the City from the general funds thereof in amounts not exceeding the lesser of the amounts spent therefor which are eligible for reimbursement under Treas. Reg. 1.150-2 or the total cost of such capital improvements, and (ii) any such reimbursement be made in accordance with Treas. Reg. 1.150-2.
Section 6. All actions heretofore taken, and all agreements, documents, instruments and notices heretofore executed, delivered or made, by the Mayor or the City Council with respect to any matters referenced herein are hereby ratified and confirmed.
Section 7. All resolutions, ordinances or parts thereof, of the City Council in conflict or inconsistent with any provision of this resolution hereby are, to the extent of such conflict or inconsistency, repealed.
Section 8. This Resolution shall take effect immediately.