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Item Coversheet Page 1 of 1 <br /> � <br /> Financial Management <br /> DATE: 8/8/2016 <br /> MEMO: Letter to Decatur City Council Financial Management Department 2016-14 <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 a not to exceed$2,200,000 Promissory Note for the City of Decatur,Macon <br /> County,Illinois,to pay the costs of renivating,repairing and maintaining the City's Fire Stattions Numbers 1,2,4,and 6, <br /> providing for the security for and payment of said note,confirming the sale thereof to busey Bank,and authorizing the execution <br /> and delivery of a Term Loan Agreement and related documents <br /> SUMMARY RECOMMENDATION: City staff recommends council approval. <br /> BACKGROUND: <br /> City solicited financing proposals from Busey Bank,Hickory Point Bank&Trust,Regions bank and Soy Capital Bank and Trust. <br /> City provided a financing term sheet outlining the project and setting the parameters for loan terms and conditions of interest to the <br /> city(copy attached). <br /> Busey 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 /> On December 21,2015,Council adopted the 2015 property ta�c levy ordinance 2016-69,which identified the revenue source <br /> earmarked to fund the debt service payment financing the fire facility renovation initiative. <br /> Council adopted Resolution R2016-77 on June 20,2016 authorizing the City Manager to enter into a debt financing arrangement <br /> to finance the fire facility renovation initiative. <br /> POTENTIAL OBJECTIONS: None <br /> INPUT FROM OTHER SOURCES: <br /> STAFF REFERENCE: Gregg Zientara <br /> ATTACHMENTS: ' <br /> Description Type '' <br /> Ordinance c>rdinanrc I� <br /> Term Loan A�reement 13acI.uE� �lateriul I <br /> Ci�Financing Tertn Sheet f�acku}��lat�rial '� <br /> Financin�proposal analysis 13arkuE�ntatcrial <br /> https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=778 9/27/2016 <br />