Agenda 06/09/2009 Item #16C18
Agenda Item No. 16C18
June 9, 2009
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve an early payoff of a State Revolving Fund (SRF)
Preconstruction Loan in the amount of $1,162,787.08 and approve necessary budget
amendments.
OBJECTIVE: To payoff a State Revolving Fund (SRF) Preconstruction Loan in the
amount of $1,162,787.08 and approve necessary budget amendments.
CONSIDERATIONS: The original pre-construction loan was approved by the BCC on
October 14, 2003, Resolution # 2003-342 and a loan agreement was signed and accepted
by the Florida Department of Environmental Protection (FDEP) on December 30, 2003.
The total amount of the revolving fund loan was $6,602,229. As part of the pre-
construction loan, the DEP extended $978,108 towards an administrative and planning
allowance in 2004. The pre-construction loan was intended for the NERWTP project.
Due to the changes in the growth projections, it was decided that the construction be
deferred.
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The terms of the agreement stipulated that, in the event the project is not initiated, a debt
service payment of $234,461 will be paid semiannually based on the total revolving fund
of $6,602,229 instead of the draw down amount of $978,108. Since the project has been
deferred, it is not fiscally prudent to retain the option to keep the entire loan amount, thus
incurring the interest cost. Furthermore, this is a growth related Wastewater fund and
therefore relies on Impact Fee as a funding source. Considering a steady decline in
impact fees, paying off this loan will save $468,922 ($234,461x2) a year in debt service
payment in a challenging time for impact fee as a source of funding. This will also free
up the unused portion of the revolving credit for FDEP to allocate to other utilities as
needed.
This early payoff of the SRF loan was approved by the finance committee on May 21,
2009.
FISCAL IMPACT: The current payoff amount per the DEP is $1,162,787.08 and is
valid through June 6, 2009. Currently in the budgets for the Wastewater Impact Fee
Fund 413 and the Debt Service Fund 410 is the transfer of moneys for the July debt
service payment of $234,461. Budget amendments are needed to transfer the payoff
amount less the first debt service amount already budgeted, $928,329.08 from the
Wastewater Impact Fee Fund 413 to the County WaterlSewer Debt Service Fund 410.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the
County Attorney's Office, is not quasi-judicial and requires no ex parte disclosure,
requires only a majority vote for approval, and is otherwise legally sufficient for Board
action.-SRT
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Executive Summary
Approve Work Order for JEI
Page 2
Aaenda Item No. 16C18
~ June 9, 2009
Page 2 of 3
GROWTH MANAGEMENT IMPACT: There is no impact on the Collier County
Growth Management Plan.
RECOMMENDATIONS: That the Board of County Commissioners, as Ex-officio the
Governing Board of the Collier County Water-Sewer District approve payment of
$1,162,787.08 to the DEP towards paying off a pre-construction loan and necessary
budget amendments.
Prepared by: Bala M. Sridhar, Senior Management & Budget Analyst, Public Utilities
Division
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Page 1 of 1
Agenda Item No. 16C18
June 9, 2009
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
16C 18
Item Summary:
Recommendation to approve an early payoff of a State Revolving Fund (SRF)
Preconstruction Loan in the amount of $1 ,162,787.08 and approve necessary budget
amendments.
Meeting Date:
6/9/2009 9:00:00 AM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
6/2/2009 10:50 AM
Approved By
James W. DeLony
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
6/2/200912:30 PM
Approved By
Scott R. Teach
Assistant County Attorney
Date
County Attorney
County Attorney Office
6/2/20091 :18 PM
Approved By
Susan Usher
Senior Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
6/2/2009 2:59 PM
Approved By
Leo E. Ochs, Jr.
Board of County
Commissioners
Deputy County Manager
Date
County Manager's Office
6/2/20094:17 PM
file:I/C:\AgendaTest\Export\13l-June%209,%202009\ l6.%20CONSENT%20AGENDA\ l6C... 6/3/2009