General Obligation Warrant, 2025

REQUEST FOR PROPOSAL

City of Spanish Fort

General Obligation Warrant, 2025

A copy of the RFP shown below is available here.

February 21, 2025

General Information

The City of Spanish Fort (the “City”) is seeking a proposal from financial institutions for financing

up to a $2,000,000.00 General Obligation Warrant for the purpose of financing the purchase of certain parcels of real property as well as financing an E-One Typhoon Q# 97545 fire truck.

The proposal is due on or before March 7, 2025, not later than 12:00 noon, Central Time.

Plan of Financing

The Warrant will constitute a general obligation of the City, secured by a pledge of the full faith and credit of the City. The Warrant will be issued pursuant to an ordinance of the City Council of the City.

Closing and delivery of the Warrants is expected to occur not later than June 3, 2025.

The Warrant will be amortized over a period ending May 15, 2035, with principal and interest payable in monthly installments commencing June 15, 2025. Interest will be calculated on the basis of actual days elapsed and a 365/366 day year.

The City prefers that the Warrant be subject to redemption at par, in whole or in part, at its option, at any time. It will consider a proposal, however, that does not permit optional redemption, or that provides for a redemption premium stated as a percentage of the amount of principal prepaid and redeemed.

The Warrant will bear interest that is excludable from income for purposes of federal income tax and is exempt from Alabama income tax. In addition, each Warrant will be a “qualified tax-exempt obligation” under Section 265(b) of the Internal Revenue Code of 1986, as amended (that is, a “bank-qualified obligation”). From and after the occurrence of a “Determination of Taxability,” as that term is defined in the form of authorizing ordinance, the Warrant shall provide for payment of interest at a taxable rate, effective as of the date interest on the Warrant becomes subject to federal income taxation.

The form of authorizing ordinance for the Warrant provides for certain covenants and agreements on the part of the City, including an obligation to provide annual audit financial statements upon receipt of the audit report by the City. In addition, the City will deliver, at the time of closing for each Warrant, the following:

(i) An opinion of Hand Arendall LLC, as bond counsel, with respect to the validity of the Warrant and the excludability of interest on the Warrant for purposes of federal income taxation;

(ii) A certified copy of the authorizing ordinance with respect to the Warrant; and

(iii) A transcript of the remaining documents and certificates delivered at closing...