Summary On June 18, 2001, the City Commission adopted Resolution R-01-31, authorizing the pledge of three (3) revenue streams as additional security for the City's outstanding United States Department of Housing and Urban Development (HUD) Section 108 Loan in the amount of $2,250,000. The revenue streams were Sales Tax, Franchise Fees and State Revenue Sharing. The City has been informed that on or about May 28, 2015, HUD will hold a new public offering of certificates issued under the Section 108 Loan Guarantee Program to refinance and legally defease, for savings, certificates issued in connection with the 2001 Public Offering.
Earlier this evening, the City Commission adopted a resolution authorizing the negotiation of a loan in the amount not to exceed $1,150,000 to refinance its current Section 108 Loan. The City desires to amend and restate Section 1 of Resolution R-01-31 to authorize the pledge of additional security for the new 2015 Note in lieu of the 2001 Note. The revenue streams more than cover the anticipated annual debt service payments on the new loan. | | |