Agenda 10/25/2022 Item #16C7 (Resolution - To position the Collier County Water Sewer District to borrow funds on an interim basis to finance the development and construction of various water and wastewater capital improvements)10/25/2022
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the ex-officio Governing Board of the
Collier County Water-Sewer District, approve a resolution authorizing the Collier County Water-Sewer
District's participation in the Florida Local Government Finance Commission's Commercial Paper Loan
Program and the development of a loan agreement with respect thereto.
OBJECTIVE: To position the Collier County Water-Sewer District (District) to borrow funds on an interim basis
to finance the development and construction of various water and wastewater capital improvements.
CONSIDERATIONS: On October 11, 2022, the Board of County Commissioners approved Item 11(A)
reprogramming $30.3M of District capital projects and operating reserves for the debris mission related to
Hurricane Ian. A substantial portion of these monies was budgeted for expenditure on various District water and
wastewater capital improvements. With this executive summary staff is proceeding with the documents necess ary
to allow the District to borrow moneys, on an interim basis, through the Florida Local Government Finance
Commission's Commercial Paper Loan Program (the "Loan Program").
Collier County is a charter member of the Florida Local Government Finance Commi ssion ("FLGFC") and for over
30 years, FLGFC's Loan Program, which is marketed and administered by the Florida Association of Counties, has
provided local governments with a flexible, low closing cost financing alternative. Since inception, the program has
loaned over $2.7 billion to over 50 counties, cities, school boards, port authorities and other special districts across
the State of Florida.
Participation in the program is subject to credit review and approval by JP Morgan Chase (the "Bank"), who
provides the letter of credit supporting the program. The terms of each loan and each draw are determined by the
Bank. The District will be subject to a credit review recognizing the District’s absence from Loan Program
participation in recent years and this credit review will be consistent with Loan Program guidelines.
Initial loan terms may be up to five years and repayment terms are flexible and tailored to each participant’s needs.
The commercial paper notes which fund the loans are secured by a direct-pay letter of credit issued by the Bank.
The Bank maintains a high credit rating in short term marketplace and this excellent credit rating allow the
commercial paper notes to be issued at low interest rates which are passed on to participants in the Loan Pro gram.
Loan repayments are secured by a subordinated pledge on the net revenues of the Water and Sewer System, subject
to approval by the Bank. The attached Resolution delegates authority to the County Manager to borrow funds
pursuant to the Loan Program in the amounts and at the times necessary to finance costs of the project(s) on an
interim basis. Once the loan program is established staff will return to the Board for approval of the not to exceed
loan amount.
FINANCE COMMITTEE RECOMMENDATIONS: Members of the County’s Finance Committee voted
unanimously to recommend the participation by the District in the Florida Local Governmental Finance
Commission’s Commercial Paper Loan Program at its September 20, 2022, meeting. Discussion centered around
providing a flexible financing mechanism for near term District capital improvements.
FISCAL IMPACT: The program bears interest at a variable rate. The current (September 2022) all in interest
rate is 2.84% including dealer fees and administrative fees. As such, the current annual interest expense on the loan
would be $28,400 per million dollars borrowed. Draw issuance costs total $2,000 for each million borrowed to a
cap of $40,000 regardless of the number of draws.
The District anticipates that any loan(s) which may be drawn pursuant to the Loan Agreement approved hereby will
be paid down as monies are available through sources such as user fee revenue surpluses or Federal and State
reimbursements related to Hurricane Ian. Any remaining principal would potentially be refinanced as part of a long
term, fixed interest rate bond. Any loan under the Loan Program may be prepaid upon at least 45 days’ notice
without penalty.
16.C.7
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GROWTH MANAGEMENT IMPACT: None
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and
legality and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board, Ex-officio the Governing Board of the Collier County Water-Sewer
District, approve the resolution authorizing the District’s participation in the Loan Program and development of the
loan agreement.
Prepared by: Amia Curry, Director, Utilities Finance Division
ATTACHMENT(S)
1. Resolution - JAK signed (PDF)
2. [Linked] Exhibit A - Form of Loan Agreement (PDF)
16.C.7
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.7
Doc ID: 23674
Item Summary: Recommendation that the Board of County Commissioners, acting as the ex-officio Governing
Board of the Collier County Water-Sewer District, approve a resolution authorizing the Collier County Water and
Sewer District's participation in the Florida Local Government Finance Commission's Commercial Paper Loan
Program and the development of a loan agreement with respect thereto.
Meeting Date: 10/25/2022
Prepared by:
Title: Manager - Operations Support - PUD – Public Utilities Operations Support
Name: AmiaMarie Curry
10/18/2022 2:41 PM
Submitted by:
Title: Manager - Operations Support - PUD – Public Utilities Operations Support
Name: AmiaMarie Curry
10/18/2022 2:41 PM
Approved By:
Review:
Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 10/18/2022 2:42 PM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 10/18/2022 3:18 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/18/2022 3:21 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 10/18/2022 3:35 PM
County Manager's Office Ed Finn Additional Reviewer Completed 10/19/2022 8:38 AM
Office of Management and Budget Laura Zautcke Additional Reviewer Completed 10/19/2022 11:34 AM
Office of Management and Budget Christopher Johnson Additional Reviewer Completed 10/19/2022 12:03 PM
County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 10/19/2022 2:20 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 10/25/2022 9:00 AM
16.C.7
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Packet Pg. 927 Attachment: Resolution - JAK signed (23674 : CCWSD Commercial Paper)
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Packet Pg. 928 Attachment: Resolution - JAK signed (23674 : CCWSD Commercial Paper)
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Packet Pg. 929 Attachment: Resolution - JAK signed (23674 : CCWSD Commercial Paper)
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Packet Pg. 930 Attachment: Resolution - JAK signed (23674 : CCWSD Commercial Paper)
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Packet Pg. 931 Attachment: Resolution - JAK signed (23674 : CCWSD Commercial Paper)