17-FI-011 - Edgewater FL Sales Tax Rev Note Series 2017

This contract is a municipal finance agreement whereby the City of Edgewater, Florida, secures a $2 million, 15‑year, tax‑exempt “bank‑qualified” loan to purchase 27 acres of land for future park development. The loan is fully backed by the City’s half‑cent local sales‑tax clearing trust fund, providing a very high debt‑service‑coverage ratio. After a competitive RFP process (five banks submitted proposals), the City Council approved BB&T’s proposal, which offered the lowest fixed rate (2.47 %) and waived pre‑payment penalties. The loan amortizes with semi‑annual interest payments beginning December 1 2017 and annual principal payments from June 1 2018 through June 1 2032, when the note matures. • Principal amount: $2,000,000 (full amount funded by BB&T) • Fixed interest rate: 2.47 % (no make‑whole penalty) • Security: pledge of Half‑Cent Sales Tax Clearing Trust Fund revenues (intergovernmental revenue) • Term: 15 years, maturing June 1 2032, with semi‑annual interest and annual principal payments • Procurement: competitive RFP, awarded to BB&T after City Council approval