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ITEM: RESOLUTION NO. R2014-61 (REFINANCING OF THE VILLAGE'S PUBLIC SERVICE TAX REVENUE REFUNDING BOND)
A RESOLUTION OF WELLINGTON, FLORIDA'S COUNCIL PROVIDING FOR THE ISSUANCE OF THE VILLAGE OF WELLINGTON'S (VILLAGE'S) PUBLIC SERVICE TAX REVENUE REFUNDING BOND, SERIES 2014 IN ORDER TO REFINANCE THE OUTSTANDING PRINCIPAL OF THE VILLAGE'S PUBLIC SERVICE TAX REVENUE REFUNDING BONDS, SERIES 2005; APPROVING THE PRINCIPAL AMOUNT, INTEREST RATE, MATURITY DATE, REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BOND; AWARDING THE SALE OF THE BOND TO REGIONS BANK; FINDING NECESSITY FOR A NEGOTIATED SALE OF SUCH BOND; AUTHORIZING THE PREPAYMENT OF THE VILLAGE'S PUBLIC SERVICE TAX REVENUE REFUNDING BONDS, SERIES 2005; DESIGNATING THE PAYING AGENT AND REGISTRAR FOR SAID BOND; CONTAINING CERTAIN AUTHORIZATIONS AND OTHER PROVISIONS; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2014-61 for the refinance of the Village's public service tax revenue refunding bond with Regions Bank.
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EXPLANATION: On September 17, 2014, the Village requested proposals from banking institutions interested in refinancing the Village's public service tax revenue refunding bond. On October 1, 2014 we received proposals from nine (9) banks as summarized below:
Bank |
Interest Rate |
Not to Exceed Fees |
PNC |
*1.48% |
$6,000 |
Regions |
1.55% |
$5,000 |
BB&T |
1.59% |
$3,500 |
Fifth Third Bank |
1.66% |
$5,800 |
TD Bank |
1.68% |
$5,000 |
JP Morgan |
*1.70% or 1.84% |
$5,500 |
Bank of America |
*1.71% |
$5,000 |
SunTrust |
*1.85% |
$4,500 |
Capital Bank |
1.87% |
$5,000 |
* Indicates an Indicative Rate subject to Change prior to Closing on the loan |
While PNC provided the most affordable rate (1.48%), the rate provided was an "indicative rate" as of October 1, 2014, and is subject to change prior to closing. Regions Bank's rate of 1.55% is fixed and not subject to change prior to closing and included $1,000 less in fees than PNC.
The Village's current rate is 3.73% and refinancing the bond will realize savings of approximately $375,000 through the life of the bond. The final maturity date of the bond will be September 1, 2019.
Staff recommends refinancing the Village's public service tax revenue refunding bond with Regions Bank at a rate of 1.55% and fees not to exceed $5,000.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: The Village will realize savings of approximately $375,000 through the life of the bond which is set to mature on September 1, 2019.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Approval of Resolution No. R2014-61 for the refinance of the Village's public service tax revenue refunding bond with Regions Bank.