Item Coversheet

CITY OF RIVIERA BEACH CITY COUNCIL
AGENDA ITEM SUMMARY

Meeting Date: 8/5/2020 
Agenda Category:REGULAR RESOLUTION

Subject: 

 

AUTHORIZATION BY THE CITY COUNCIL FOR THE CRA TO ISSUE DEBT 


Recommendation/Motion: Approve the authorizing resolution allowing the CRA to issue debt.

Originating Dept FINANCE  Costs Total interest costs over the 13 year loan period is approximately $4.4 million. 
User Dept.CRA Funding SourceCRA Tax Increment Revenues
AdvertisedNo Budget Account Number
Date   
Paper   
Affected PartiesNot Required   

Background/Summary: 

The Riviera Beach Community Redevelopment Agency (the "Agency") is contemplating issuance of its Redevelopment Agency Redevelopment Refunding Revenue Note, Series 2020A in a principal amount not to exceed $13,500,000 (the "Series 2020A Note") in order to  refinance its outstanding Redevelopment Revenue Note, Series 2011 dated April 28, 2011, its outstanding Redevelopment Revenue Note, Series 2013A dated August 30, 2013 and a portion of its outstanding Redevelopment Revenue Note, Series 2018 dated November 5, 2018.

 

The Agency is contemplating issuance of its Redevelopment Agency Taxable Redevelopment Refunding and Improvement Revenue Note, Series 2020B in a principal amount not to exceed $16,500,000 (the "Series 2020B Note") in order to  (i) refinance the outstanding Redevelopment Taxable  Refunding Revenue Note, Series 2013B dated August 30, 2013 and a portion of its outstanding Redevelopment Revenue Note, Series 2018 dated November 5, 2018 and (ii) to fund various community redevelopment projects within the Riviera Beach Community Redevelopment Area including the acquisition and renovation of certain property within the Agency, marina infrastructure, street improvements, affordable housing projects, and qualified grants and such other projects as may be approved by the Agency from time to time, in accordance with and in furtherance of the Redevelopment Plan (collectively, the "2020 Project").

It is necessary, desirable and in the best interests of the citizens of Riviera Beach that the City Council approves issuance by the Agency of its Series 2020A Note and its Series 2020B Note (collectively, the Series 2020 Notes").

 Financial Summary:

 

The CRA issued an RFP for Bank Loan proposals for Tax-Exempt, Bank Qualified Loan on June 11, 2020, and received one proposal.   The proposals was submitted by Truist Bank. 

 

The proposed debt issuance has Coupon rates of 1.81% for Series 2020A and 2.4% for Series 2020B and a true interest cost of 2.187935% over 13 years.   The principal payments will begin in 2021.

 

The Net Present Value Savings of the Refunding is $1,992,579.22.


 
Fiscal Years
Capital Expenditures
Operating Costs
External Revenues
Program Income (city)
In-kind Match (city) 
Net Fiscal Impact
NO. Additional FTE Positions
(cumulative)

III. Review Comments

A. Finance Department Comments:

 

 
B. Purchasing/Intergovernmental Relations/Grants Comments:
 
C. Department Director Review:
Contract Start Date 
Contract End Date
Renewal Start Date
Renewal End Date
Number of 12 month terms this renewal
Dollar Amount
Contractor Company Name
Contractor Contact
Contractor Address
Contractor Phone Number
Contractor Email
Type of Contract
Describe
ATTACHMENTS:
File NameDescriptionUpload DateType
MEMO_RE_DEBT_ISSUANCE_CRA_NOTES.pdfAGENDA ITEM MEMO cra DEBT ISSUANCE7/22/2020Cover Memo
FN-Resolution_Number_66-20_Authorization_to_Issue_Debt_CRA_08.05.2020.pdfRESOLUTION AUTHORIZATION TO ISSUE DEBT8/4/2020Resolution
RBCRA_Series_2020A_B_HTS_Memo_(7-22-2020).pdfTRANSACTION SUMMARY-CRA FINANCIAL ADVISOR7/22/2020Backup Material
CRA_REQUEST_FOR_BANK_LOAN_PROPOSAL_06.11.2020.pdfCRA REQUEST FOR BANK LOAN PROPOSAL 7/21/2020Backup Material
TRUIST_PROPOSAL_06.29.2020.pdfTRUIST PROPOSAL7/21/2020Backup Material
TRUIST_PROPOSAL_COVER_LETTER_06.29.2020.pdfTRUIST PROPOSAL COVER LETTER7/21/2020Backup Material
FINANCING_SCHEDULE.pdfFINANCING SCHEDULE7/21/2020Backup Material
COVERAGE_SUMMARY_ANALYSIS.pdfCOVERAGE SUMMARY ANALYSIS7/21/2020Backup Material
REVIEWERS:
DepartmentReviewerActionDate
Financesherman, randyApproved7/22/2020 - 11:40 AM
PurchasingPemsel, AltheaApproved7/22/2020 - 1:02 PM
Financesherman, randyApproved7/22/2020 - 4:27 PM
AttorneyWynn, DawnApproved7/22/2020 - 5:24 PM
City ClerkRobinson, ClaudeneApproved7/22/2020 - 11:33 PM
City ManagerJacobs, DeirdreApproved7/29/2020 - 8:31 PM