AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE ATTACHED FORWARD FIXED RATE LOCK LETTER BETWEEN PNC BANK, NATIONAL ASSOCIATION AND THE CITY OF COCONUT CREEK TO SET AND LOCK THE INTEREST RATE FOR THE CITY’S CAPITAL IMPROVEMENT REFUNDING REVENUE NOTE SERIES 2021, REFINANCING THE CITY’S CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2018. (ADDENDUM)
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BACKGROUND:
A request for proposals was distributed to a broad pool of lenders active in municipal lending for purposes of acquiring a lender to provide for the refinancing of the City’s existing Capital Improvement Revenue Note, Series 2018. After reviewing the eight (8) proposals received, the recommendation was made to proceed with PNC Bank, National Association. While municipal interest rates have historically remained relatively stable, those rates unexpectedly increased in the past few days and there are indications that further changes may occur prior to the anticipated closing of the Note.
DISCUSSION:
In order to lock in the interest rate and protect the City from further market increases, it is recommended that the City enter into a Forward Fixed Rate Lock Letter with PNC Bank, National Association to set and lock the interest rate for the City’s Capital Improvement Refunding Revenue Note Series 2021, refinancing the City’s Capital Improvement Revenue Note, Series 2018.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT: N/A