Brooksville approves engagement of bond counsel as staff explores loan to close firefighter pension gap

The Brooksville City Council voted unanimously to approve an engagement letter for bond counsel to assist the city in preparing and negotiating documents for a potential loan to close a shortfall related to termination of the city's firefighter pension plan.

Finance Director Autumn Sullivan told the council the firm (Brian Olive and Miller) would guide the city through the loan process, prepare the required resolution and assist during closeout; the firm’s fee for these services is $25,000. Sullivan and other staff clarified that approving the engagement letter is not the same as approving debt: any actual borrowing will return to council for approval once final numbers are available.

Staff explained the size of the loan will depend on the pension plan’s asset valuation and members’ payout choices. A staff summary cited a recent pension-board discussion placing plan assets at about $9,000,000; staff said the total termination obligation could be higher and that the loan would make up the difference between assets and the termination payout. Council was told the initial engagement would support drafting documents for an amount up to $5 million but that any final loan would require a separate council vote.

Council members asked about timing and options to avoid prepayment penalties; staff and counsel will seek terms that provide flexibility for accelerated paydown if feasible. After discussion, the motion to approve the engagement letter passed, 5–0.

Council directed staff to continue work with the pension board and bond counsel and to return with final loan documents and exact figures for council consideration prior to any borrowing.