LEGISLATIVE RESEARCH CENTER
File #: 24-1256    Name:
Type: General Business Status: Agenda Ready
File created: 9/11/2024 In control: Broken Arrow Municipal Authority
On agenda: 9/17/2024 Final action:
Title: Consideration, discussion and possible approval of and authorization to execute Resolution No. 1604, a resolution of the Broken Arrow Municipal Authority (the "Authority") authorizing the issuance of its Promissory Note, Series 2024 (the "Note") in the aggregate principal amount of $3,264,000.00; waiving competitive bidding and authorizing the Note to be sold on a negotiated basis; approving and authorizing execution of a Note Indenture authorizing the issuance and securing the payment of the Note; providing that the organizational document creating the Authority is subject to the provisions of the Indenture; approving and authorizing execution of an Agreement of Support; authorizing and directing the execution of the Note and other documents relating to the transaction; and containing other provisions relating thereto
Attachments: 1. Resolution 1604, 2. 2024NOTE(BAMA) 2024 Lease Purchase (Government Capital) Updated, 3. 24NTFM(BAMA) Promissory Note Series 2024 (FM Bank) Updated, 4. Engagement Letter - Public Law

Broken Arrow Municipal Authority

Meeting of: 09/17/2024

 

Title:

title

Consideration, discussion and possible approval of and authorization to execute Resolution No. 1604, a resolution of the Broken Arrow Municipal Authority (the “Authority”) authorizing the issuance of its Promissory Note, Series 2024 (the “Note”) in the aggregate principal amount of $3,264,000.00; waiving competitive bidding and authorizing the Note to be sold on a negotiated basis; approving and authorizing execution of a Note Indenture authorizing the issuance and securing the payment of the Note; providing that the organizational document creating the Authority is subject to the provisions of the Indenture; approving and authorizing execution of an Agreement of Support; authorizing and directing the execution of the Note and other documents relating to the transaction; and containing other provisions relating thereto

End

 

Background:

On September 3rd the Authority authorized the purchase of 12 Peterbilt Drive Chassis with Heil Python Automated Side Loaders from River Cit Hydraulics. Staff has reviewed the options for financing, and we will be going with F & M Bank in Guthrie Oklahoma for a total amount $3,264,000. Cost of the trucks is $5,191,350.60. We will be putting down $2 million and finance the balance. It will be a 5 year note with no prepayment penalty. If we exercise our buy back option with River City Hydraulic, we would be able to pay off the balance of the loan with the proceeds of the buy back.

 

 

Cost:                                                                $72,280

Funding Source:                     Loan Proceeds

Requested By:                      Cynthia S Arnold, Finance Director

Approved By:                      City Manager’s Office

Attachments:                                          Resolution #1604
                                    Government Capital Funding Summary
                                    F & M Bank Funding Summary 
                                    Public Finance Law engagement letter

 

Recommendation:

recommend

Approve resolution No 1604 and authorize its execution

end