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Mulberry commission approves two refinancing resolutions to lower interest costs and refinance $5 million loan
Summary
The commission adopted RES 2026-08 to change an anti-dilution test and reduce interest on certain city notes (from 7.25% to 5.75%) and RES 2026-09 to issue a refunding note not to exceed $5.1 million to refinance a $5 million balloon payment; both passed by voice vote.
The Mulberry City Commission voted to approve two finance resolutions intended to reduce borrowing costs and refinance an upcoming $5 million balloon payment on capital improvements.
City Attorney explained RES 2026-08 as an amendment to the anti-dilution test tied to the city's capital improvement revenue note and a change in the interest terms on the city's taxable capital improvement refunding note. "The interest on your commercial loan will be changed... reduce from the current 7.25% down to 5.75%," the City Attorney said, describing the change as increasing funds available to pledge and lowering near-term interest expense.
Commissioner Divine moved to adopt RES 2026-08; Commissioner Versaci seconded and the commission approved the resolution by voice vote.
The commission then considered RES 2026-09, authorizing a refunding revenue note in a principal amount not to exceed $5,100,000 to refinance the city's $5,000,000 bridge loan that matured later this month. The attorney said the refinancing will pay transactional costs and convert the immediate balloon payment into a longer payment plan; there are no prepayment penalties on the existing loan.
A motion to adopt RES 2026-09 was made and seconded; the resolution passed by voice vote. After the votes the commission recessed briefly so attorneys could execute closing documents.
What passed: RES 2026-08 (anti-dilution test and interest adjustment) and RES 2026-09 (refunding revenue note up to $5.1M to refinance $5M bridge loan). Both measures were approved by voice vote during the meeting.
