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Item Coversheet Page 1 of 1 <br /> � <br /> Financial Management <br /> DATE: 8/8/2016 <br /> MEMO: Letter to the Decatur City Council Financial Management Department 2016-13 <br /> TO: Honorable Mayor Moore Wolfe and Members of the City Council <br />, FROM: Tim Gleason <br /> Gregg D.Zientara <br />, SUBJECT: Ordinance providing for the issuance of not to exceed$7,500,000 promissory Note of the City of Decatur,Macon <br />, County,Illinois,to pay the costs of resurfacing and reconstructing local roads and streets within the City,providing for the security <br /> for and payment of said note,confirming the sale thereof to Busey bank,and authorizing the execution and delivery of a Term <br /> Loan Agreement and related documents <br /> SUMMARY RECOMMENDATION: City staff recommends council approval. <br /> BACKGROUND: <br /> City solicited financing proposals from Busey Bank,Hickory Poiny Bank&Trust,Regions Bank,and Soy Capital Bank and <br /> Trust.City provided a financing term sheet outlining the project and setting the parameters for loan terms and conditions of <br /> interest to the city(copy attached). <br /> Busey Bank,Hickory Point Bank and Regions Bank submitted financing proposals for consideration by the City. <br /> The City selected Busey Bank as the most responsive bidder due to several factors including:minimal loan conditions and <br /> covenants,fixed interest rate,and most favorable pricing considering the fixed interest rate. <br /> A summary schedule is attached identifying the comparative financial analysis. <br /> PRIOR COUNCIL ACTION: <br /> Council created the local motor fuel tax with passage of council ordinance 2016-08 adopted on February 16,2016 <br /> Council adopted Resolution R2016-78 on June 20,2016 authorizing the City Manager to enter into a debt financing arrangement <br /> to finance local street resurfacing and reconstruction. <br /> POTENTIAL OBJECTIONS: None <br /> INPUT FROM OTHER SOURCES: <br /> STAFF REFERENCE: Gregg Zientara <br /> ATTACHMENTS: <br /> Description Type <br /> Ordinance (>r�i i n ancr <br /> Term Loan Agreement 13;arku���I:nc�•ial <br /> City Financin�;Term Sheet (3ackup�latcrial <br /> Financingproposal anavsis k3ackup�lat�rial <br /> https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=775 9/27/2016 <br />