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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. .- 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 ,- 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 .......'..~. 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