RFP Staff
♦ At Tuesday’s City Council meeting City Council approved a contract with Suntrust Bank to refinance Fibrant after a presentation by the city finance director Teresa Harris concerning the city’s Series 2008 and Series 2013 Certificates of Participation (COPs) employed to fund Fibrant the city’s municipal broadband network. Harris told the new rate of the refinance proposal would be 2.o6%. Of the 30 banks approached about refinancing only Suntrust submitted a proposal. Not requiring debt service, Suntrust agreed to a 13-year commitment to the interest rate.
If okayed by the Local Government Commission (LGC), the refinancing would slice off $3 million dollars worth of debt service over the loan’s lifespan and would save the city somewhere in the vicinity of $400,000 yearly.
City Council approved a resolution and will ask for the LGC’s approval. City Council stated in their resolution that the proposed refinancing contract was necessary for the city, that no tax increases will be required, and that the city is not in default of any debt service obligations. LGC approval will also include appointing Public Financial Management, Inc. (a the financial advisor) and Robinson Bradshaw & Hinson P.A. as its special counsel. City Council also approved the Installment Financing Contract with STI Institutional and Government, Inc. that would permit designated officials to deliver the refinancing documents.
Harris told City Council that the LGC will consider the approval of the refinancing proposal at their meeting next month in Raleigh.
Learn all about the Fibrant Debacle here:
