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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: Title: Financing a Fire Pumper Truck
February 28, 2023
Submitted By: Kenneth D. Grant Department: Finance
Brief Summary: At this time, we are seeking authorization to enter into a lease agreement
with Huntington Bank for the purchase of a Fire Pumper Truck.
Detailed Summary & Background: Summary: At the August 10, 2021 City Commission
meeting the Commission voted to purchase two Fire Trucks. The first truck has already
been financed in 2021. By the beginning of March 2023, the second Fire Pumper Truck
will be ready to purchase for $761,602.65. At this time, we are seeking authorization to
enter into a lease agreement with Huntington Bank. The proposed terms are for a five-
year lease at 4.4% interest rate with the City purchasing the truck at the end of the lease
for $1. There is a one-time $500.00 processing fee.
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices
Amount Requested: Amount Budgeted: $14,163.97 per month for
60 months
Fund(s) or Account(s): Fund(s) or Account(s):101-50336-5700
Recommended Motion: To allow staff to enter into a lease agreement with Huntington
Bank for Fire Pumper Truck.
Approvals: Get approval from Guest(s) Invited / Presenting
division head at a minimum prior
to sending to the Clerk. Yes [J
Immediate Division Head [i No il L]
Information Technology
Other Division Heads Ee] C]
Communication
Legal Review ee
For City Clerk Use Only:
Commission Action:
TERM SHEET
Date: February 20, 2023
Issue: Installment Purchase Agreement (the “IPA’)
Issuer/Borrower: City of Muskegon, County of Muskegon, State of Michigan (“Issuer”)
‘Purchaser/Lender: Huntington Public Capital Corporation (“Huntington”)
Security: The Fire Truck
Principal Amount: $761,602.65
Use of Proceeds: The City desires to acquire a fire truck.
Bond Counsel: TBD
Purchaser’s Counsel: N/A
Closing Date: March 20, 2023 (estimated)
Tax Status: Tax-Exempt (Bank Qualified)
5 Year Final Maturity: March 20, 2028
5 Year Interest Rate: 4.40%
Rate Adjustment: If the funding of the IPA has not occurred by March 24, 2023, then the Interest Rate and
payment will be adjusted to maintain Huntington’s economics as of the date of issuing
this Term Sheet.
Fee to Huntington: $500 Fee for Document Processing
Escrow Fee to Huntington: $500 Fee, if necessary
Transaction Fees: All transaction fees, including those of any attorney, shall be the responsibility of the
Issuer.
Interest Payments: Due and payable monthly, commencing on April 20, 2023 (estimated)
Principal Payments: Due and payable monthly, commencing on April 20, 2023 (estimated)
Optional Prepayment: The IPA may be subject to optional redemption at any time (in whole, but not in part) at a
price equal to the then outstanding balance (“Balance”), plus accrued interest to the date
fixed for redemption, plus a prepayment premium calculated as follows: 3% of the
Balance if paid in the first year of the IPA term; 2% of the Balance if paid in the second
and third years of the IPA term; and 1% of the Balance if paid in the fourth year of the IPA
Term; there shall be no prepayment penalty on the IPA if it is called for redemption in the
fifth year of the IPA term.
Direct Placement: Huntington is extending credit as a lender in the usual course of its loan business through
the purchase of the IPA for its own account in its normal and customary business
practice, with no current intention on the resale, distribution or transfer thereof.
Term Bond Election: The IPA will be single certificate term IPA, with principal payments representing
mandatory principal redemptions.
Term Sheet — City of Muskegon — Installment Purchase Agreement Page 2
Required Documentation: Draft transaction documents prepared by Huntington unless the City has a Bond Attorney
which it prefers to use. If that is the case, the documents will need to be reviewed by
Huntington prior to signature. Huntington also requires a closing memo, with wire
instructions, signed by an officer of the Issuer authorized in the resolution. In addition,
Huntington requires the original IPA, the certified resolution(s), all the signed closing
certificates, the signed legal opinion, if necessary, and a signed 8038G and non-arbitrage
and tax certificate, if the issue is tax-exempt, all emailed two days prior to the closing
date.
Paying Agent: Not required by Huntington
Rating: Not required by Huntington
POS/Official Statement: Not required by Huntington
CUSIP: Not required by Huntington
DTC Closing: Not required by Huntington
Proposal Expiration: This proposal shall expire at Huntington’s option if (a) Huntington has not received the
Issuer’s written acceptance by March 1, 2023; and (b) if the closing date of the IPA has
not occurred by March 24, 2023.
Thank you for the opportunity to offer a proposal on this request. We appreciate your consideration and look forward to
your favorable response. Should you have any questions regarding this term sheet, please do not hesitate to contact me.
Respectfully Submitted,
Weredith Ly, Qhanle Mare Reen
Meredith A. Shanle, Vice President Marc Reen, Vice President, Government Banking
Huntington Public Capital Huntington National Bank
Phone: 313-410-8771 Phone: 616-235-6486
Email: Meredith.A.Shanle@Huntington.com Email: Marc.Reen@Huntington.com
Accepted By:
City of Muskegon
(a
PY Kenndth Gra
Name
Finang Oreedosx
Title ra | > 6,
Date
Huntington Public Capital® ("HPC"), a division of The Huntington National Bank (the "Bank"), is providing the information contained in this document for
discussion purposes only in connection with an arm's-length transaction under discussion between you and HPC. If you are a “municipal entity" or
"obligated person" within the meaning of the municipal advisor rules (the “Rules") of the Securities and Exchange Commission, Rule 15Ba1-1 et seq.
this information is provided to you pursuant to and in reliance upon the "bank exemption," and/or other exemptionsfrom and/or the "general information"
exclusion provided under the Rules. HPC is acting for its own interest and has financial and other interests that differ yours. HPC is not acting as a
municipal advisor or financial advisor, and has no fiduciary duty, to you or any other person pursuant to the Rules. The information provided in this
document is not intended to be and should not be construed as "advice" within the meaning of the Rules. HPC is not recommending that you take or
refrain from taking any action with respect to the information contained in this document. Before acting on this information, you should discuss it with
your own financial and/or municipal, legal, accounting, tax and other advisors as you deem appropriate. As used in this notice, the "Rules" means
Section 15B of the Securities Exchange Act of 1934, the Securities and Exchange Commission's Rule 15Bat1-1, et seq., and any related municipal
advisor rules of the Municipal Securities Rulemaking Board, all as they may be amended from time to time.
Interest Total Interest Principal Outstanding
Date Days Rate Payment Portion Portion Balance
Dated Date j 3/20/2023 761,602.65
i 4/20/2023 30 4.40% 14,163.97 2,792.54 44,371.43 750,231.22 0.08333333 947.619167
2 5/20/2023 30 4.40% 14,163.97 2,750.85 11,413.12 738,818.10 0.16666633 1902.18286
3 6/20/2023 30 440% 14,163.97 2,709.00 11,454.97 727,363.13 0.24999933 2863.73486
4 7/20/2023 30 4.40% 14,163.97 2,667.00 11,496.97 715,866.16 0.33333233 3832.31184
5 8/20/2023 30 4.40% 14,163.97 2,624.84 11,539.13 704,327.03 0.41666533 4807.95545
6 9/20/2023 30 4.40% 14,163.97 2,582.53 11,581.44 692,745.59 0.48999833 5780.7007
7 10/20/2023 30 4.40% 14,163.97 2,540.07 11,623.90 681,121.69 0.88333133 8780.58509
8 11/20/2023 30 4.40% 14,163.97 2,497.45 411,666.52 669,455.17 0.66666433 7777.65278
9 42/20/2023 30 4.40% 14,163.97 2,454.67 41,709.30 657,745.87 0.74999733 8781.94378
10 1/20/2024 30 4.40% 14,163.97 2,411.73 11,752.24 645,993.63 0.83333033 9793.49808
41 2/20/2024 30 4.40% 14,163.97 2,368.64 11,795.33 634,198.30 0.91666333 10812.3465
12 3/20/2024 30 4.40% 14,163.97 2,325.39 11,838.58 622,359.72 0.99999633 11838.5366
13 4120/2024 30 4.40% 44,163.97 2,281.99 11,881.98 610,477.74 1.08332933 12872.0975
14 5/20/2024 30 4.40% 14,163.97 2,238.42 11,925.55 598,552.19 1.16666233 13913.09
15 6/20/2024 30 4.40% 14,163.97 2,194.69 11,969.28 586,582.91 1.24999533 414961.5444
16 7120/2024 30 4.40% 14,163.97 2,150.80 12,013.47 574,569.74 1.33332833 46017.4999
17 8/20/2024 30 4.40% 14,163.97 2,106.76 12,057.21 562,512.53 1.41666133 47080.9832
18 9/20/2024 30 4.40% 14,163.97 2,062.55 12,101.42 550,411.14 1.49999433 48152.0614
19 40/20/2024 30 4.40% 14,163.97 2,018.17 412,145.80 538,265.31 1,58332733 19230.7771
20 11/20/2024 30 440% 14,163.97 1,973.64 42,190.33 526,074.98 1.66666033 20317.1395
21 42/20/2024 30 440% 14,163.97 1,928.94 12,235.03 513,839.95 4.74999333 21411.2209
22 41/20/2025 30 4.40% 14,163.97 1,884.08 12,279.89 501,560.06 1.83332633 22513.0457
23 2/20/2025 30 4.40% 414,163.97 1,839.05 12,324.92 489,235.14 1.91665933 23622.673
24 3/20/2025 30 4.40% 14,163.97 1,793.86 12,370.11 476,865.03 1.99999233 24740.1252
25 4120/2025 30 4.40% 14,163.97 1,748.51 12,415.46 464,449.57 2,08332533 25865.4423
26 5/20/2025 30 4.40% 14,163.97 41,702.98 12,460.99 451,988.58 2.16665833 26998.7078
27 6/20/2025 30 440% 14,163.97 1,657.29 12,506.68 439,481.90 2.24999133 28139.9216
28 7/20/2025 30 4.40% 14,163.97 1,611.43 12,552.54 426,929.36 2,33332433 29289.147
29 8/20/2025 30 4.40% 14,163.97 1,565.44 12,598.56 414,330.80 2.41665733 304464024
30 9/20/2025 30 4.40% 14,163.97 1,519.21 12,644.76 401,686.04 2.49999033 31611.7778
31 10/20/2025 30 440% 14,163.97 1,472.85 412,691,412 388,994.92 2,58332333 32785.2664
32 41/20/2025 30 4.40% 14,163.97 1,426.31 12,737.66 376,257.26 2.66665633 33966.9617
33 12/20/2025 30 440% 14,163.97 1,379.61 12,784.36 363,472.90 2.74998933 35156.8536
34 1/20/2026 30 4.40% 14,163.97 1,332.73 12,831.24 350,641.66 2,83332233 36355.0389
35 2/20/2026 30 4.40% 14,163.97 1,285.69 12,878.28 337,763.38 2,.91665533 37561.504
36 3/20/2026 30 4.40% 14,163.97 1,238.47 12,925.50 324,837.88 2.99998833 38776.3492
37 4120/2026 30 4.40% 14,163.97 1,191.07 12,972.90 311,864.98 3.08332133 39999,6193
38 5/20/2026 30 4.40% 14,163.97 4,143.50 13,020.47 298,844.51 3.16665433 41231.3277
39 6/20/2026 30 4.40% 14,163.97 4,095.76 13,068.21 285,776.30 3.24998733 42471.517
40 7/20/2026 30 4.40% 14,163.97 1,047.85 13,116.12 272,860.18 3.33332033 43720.2295
41 8/20/2026 30 440% 14,163.97 999.75 13,164.22 259,495.96 3.41665333 44977.5761
42 9/20/2026 30 4.40% 14,163.97 951.49 13,212.48 246,283.48 3.49998633 46243.4994
43 10/20/2026 30 4.40% 14,163.97 903.04 13,260.93 233,022.55 3.58331933 47518.1468
44 11/20/2026 30 440% 14,163.97 854.42 13,309.55 219,713.00 3.66665233 48801.4926
45 12/20/2026 30 4.40% 14,163.97 805.61 13,358.36 206,354.64 3.74998533 50093.6541
46 4/20/2027 30 4.40% 414,163.97 756.63 13,407.34 192,947.30 383331833 513946022
47 2120/2027 30 4.40% 14,163.97 707.47 13,456.50 179,490.80 3.91665133 52704.4187
48 3/20/2027 30 4.40% 14,163.97 658.13 13,505.84 165,984.96 3.98998433 54023.1484
49 4120/2027 30 4.40% 14,163.97 608.61 13,555.36 152,429.60 4,08331733 §5350,8364
50 5/20/2027 30 4.40% 14,163.97 $58.91 13,605.06 138,824.54 4.16665033 56687.5278
51 6/20/2027 30 4.40% 14,163.97 509.02 13,654.95 125,169.58 4,24998333 58033.3099
52 7/20/2027 30 4.40% 14,163.97 458.96 13,705.01 111,464.58 4,33331633 59388.1437
53 8/20/2027 30 4.40% 14,163.97 408.70 13,755.27 97,709.31 4.41664933 60752.2041
54 9/20/2027 30 4.40% 14,163.97 358.27 13,805.70 83,903.64 4.49998233 62125.4061
55 10/20/2027 30 4.40% 14,163.97 307.65 13,856.32 70,047,29 4,58331533 63507.8839
56 41/20/2027 30 440% 14,163.97 256.84 13,907.13 56,140.16 4.66664833 64899,685
57 12/20/2027 30 4.40% 414,163.97 205.85 13,958.12 42,182.04 4.74998133 66300.8094
58 4/20/2028 30 440% 14,163.97 154.67 14,009.30 28,172.74 4,83331433 677171.3505
59 2/20/2028 30 4.40% 14,163.97 103.30 14,060.67 14,112.07 4.91864733 69131.3557
60 3/20/2028 30 4.40% 14,163.81 51.74 14,112.07 0.00 4.99998033 70560.0725
§,08331333 0
Grand Totals 849,838.06 88,235.41 761,602.65 0
2005342.51
2.63305612
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