Specifications include, but are not limited to: The City of Hot Springs, Arkansas, is accepting bids for financing for various capital assets. The following information describe the necessary requirements for bidding. The City of Hot Springs reserves the right to award within the budget available. Financing for various capital assets are shown below under "Capital for Debt Financing 2024 (vehicles, trailers, heavy-duty equipment and other miscellaneous assets) in an amount not to exceed $3,074,033. The City will request disbursement from the lender and the rate will be established at the time of disbursement based on the methodology outlined in this request. The City will maintain the security interest and titles for the capital assets as this is a general obligation borrowing. 1. The borrowing will be authorized pursuant to Amendment 78 of Article 16 of the Arkansas State Constitution, which allows cities to enter into short term financing. All loan documents will reflect that. 2. The note will be designated as “qualified tax-exempt” obligation within the meaning of the Internal Revenue Code of 1986, as amended. 3. Any legal opinion will be provided by the City’s in house legal counsel. There should be no out of pocket costs for outside legal counsel or any other closing costs. 4. The benchmark index for establishing the rate is the five (5) year treasury bill. The rate will be fixed for the term of the note. 5. Repayments of principal and interest will be made annually, starting on July 1, 2024 and interest will be made semiannual, starting July 1, 2024. 6. The loan term will be five (5) years. 7. The successful vendor will be responsible for preparing the 8038G for the City to remit to the IRS. 8. A copy of the amortization schedule must be uploaded with the bid. 9. The City’s capital assets are insured by Arkansas Municipal League. Lenders will not be named as a loss payee. The City will hold all titles since the loan is a general obligation and not collateralized by the assets. 10. Any capital asset on the Capital for Debt Financing can be substituted by another capital asset as long as it meets the definition established by Amendment 78. 11. The principal and interest payments will be electronically drafted by the vendor. It will be the vendor's responsibility to collect the information from the City and set up the draft. 12. Added basis points must be fixed, and not a formula on the amortization schedule.
