TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Approve the Second Amendment to the State-Funded State Infrastructure Bank Loan Agreement.
Recommended Action
Approve the Second Amendment to the State-Funded State Infrastructure Bank Loan Agreement.
Background Information
On June 21, 2012, the City entered into an agreement with the State of Florida, Department of Transportation for a State-Funded State Infrastructure Bank (SIB) Loan. The loan made to the City was for the capital outlay project improvements to Sumter Boulevard in the City of North Port, Sarasota County Florida. The maximum initial principal loan amount was Ten Million, $10,000,000. The total amended SIB loan amount was $9,509,893.50.
Pursuant to Paragraph 8.01 of the Agreement, the City has asked to prepay the Loan in full on October 1, 2018. The State of Florida, Department of Transportation (Department) has determined that the prepayment request by the City will not adversely impact the Department’s ability to comply with covenants relating to obligations secured by the Loan.
The City requested to payoff the loan on October 1, 2018 to save $21,980.82 in loan interest payments.
Legal has reviewed for form and correctness.
Strategic Plan
Financially responsible city providing quality municipal services.
Financial Impact
Final payment of $2,700,492.94 will be made on October 1, 2018 from Transportation Impact Fees as adopted in the Fiscal Year 2019 Budget. The early payroff provides to the City a savings of $21,980.82 in loan interest payments.
Procurement
N/A
Attachments:
1. Second SIB Loan Amendment
2. First SIB Loan Amendment
3. State-Funded SIB Loan Agreement
Prepared by: Charlina L. Lowrie, CGFO, Finance Director
Department Director: Charlina L. Lowrie, CGFO, Finance Director