Village of Wellington - File #: 14-725

• File #: 14-725
• Name: 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 BO
• Type: Purchasing/Contract
• Body: Village Council
• Agenda Date: 10/14/2014
• Final action: 2/1/2016
• Title: 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 Regi...

Date	Action By	Action	Result
10/14/2014	Village Council	approved
10/13/2014	Village Council Workshop

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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 wil...