May 31, 2019
Request for Proposal – Municipal Borrowing
Purpose and Scope
The Dresden School District (the “District”) is seeking proposals from qualified banking institutions (the “bank”) to provide municipal loan borrowing services for a 6-year term as described herein. The objective is to finance a drainage repair and turf field replacement project located at the Hanover High School, 41 Lebanon Street, Hanover, NH with a fixed rate, term loan program at the lowest overall borrowing cost, pursuant to certain conditions. The project was ratified by public vote at the March 5, 2019 Annual Meeting (Article 2). Pertinent project documents can be located at WWW.SAU70.ORG under the Facilities Department section. The District’s audit for the year ending June 30, 2018 can be located at the same website under the Finance Department section. This authorization was completed in accordance with relevant New Hampshire and IRS requirements so as to make this a qualified tax-exempt issue.
A proposed bank must be FDIC insured.
RFP distributed to banks - 05/31/2019
Proposals due from banks - 06/10/2019
Board decision no later than - 06/11/2019
Loan Documents executed and complete - 07/01/2019
Disbursement - 07/15/2019
Response Date and Procedure
One copy of your proposal must be received by the District via email to firstname.lastname@example.org, no later than 1:00 pm Monday, June 10, 2019. Proposals must be clearly identified in the subject line as “MUNICIPAL LOAN BORROWING SERVICES PROPOSAL.” All proposals will remain unopened and unread until 1:00 P.M.
Late proposals will not be considered. A corporate official, legally authorized to bind the bank, must sign the proposal.
Questions regarding the bid process must be in written form via email and must be submitted no later than 1:00 P.M. on Wednesday, June 5, 2019 to email@example.com and firstname.lastname@example.org.
Questions and answers will be consolidated and provided via e-mail to all banks on record as having received the RFP by 1:00 P.M. on Wednesday, June 5, 2019. If your bank was not directly solicited, please send an email registering your intent to bid by the above-mentioned date in order to receive any updated information or questions/answers.
Proposals will be evaluated by the District Treasurer and business office. All proposals will be evaluated upon the same criteria. The criteria used will be responsiveness to RFP, total costs involved with process, and ability of institution to meet the variable payment schedule as requested.
The District reserves the right to accept or reject any or all offers, to waive any irregularity in any or all offers, to further negotiate terms and to make a selection of borrowing deemed to be in the best interest of the District. The District’s financing proposal choice will be announced by the Dresden School Board at the regularly scheduled meeting on Tuesday, June 11, 2019.
Structure of the Financing
The following describes the District’s requirements in establishing the Term Loan Program:
1. Amount: $900,000
2. Rate: Fixed, tax-exempt rate
3. Repayment Provisions:
Based on the schedule of other retiring debt over a period of 5 years, structured as follows: August 1, 2020 – interest only; August 1, 2021 - $39,000; August 1, 2022 - $60,000; August 1, 2023 - $60,000; and August 1, 2024 - total balance remaining.
4. Prepayment: The District is requesting that the interest rates be proposed on the basis of no prepayment penalty in whole or in part at any time following five (5) business days notice by the District.
Each offer must disclose a nominal rate for the borrowing and an amortization
schedule showing the actual total dollar cost of interest expected at maturity. Funds must be wired at no charge to and from the District's bank account both at inception of the borrowing, and at repayment.
We look forward to hearing from you.
Cheryl Lindberg, Treasurer, Dresden School District
Jamie Teague, Business Administrator – SAU70 & Dresden School District