Agenda 07/28/2009 Item #16F13g en, c-.D, 16 F 13
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EXECUTIVE SUMMARY
Recommendation that the Board approves prepayment of the Caribbean Gardens
Commercial Paper Loan in the amount of $1,735,000.
OBJECTIVE: To obtain approval for prepayment on the Caribbean Gardens
Commercial Paper Loan in the amount of $1,735,000.
CONSIDERATIONS: On November 2, 2004 Collier County voters approved a
referendum authorizing the acquisition of certain land, including the land currently used
as Caribbean Gardens, for the purpose of ensuring the continued operation of the
Caribbean Gardens Zoo, by issuing bonds payable from ad valorem taxes not
exceeding 0 .1500 mills for a period of ten (10) years.
On July 26, 2005, item 10A, the Board approved a Resolution authorizing a loan (Loan
# A-32-1) from the Commercial Paper Program in an amount not to exceed $40 million
to be used as interim financing of the acquisition of the Caribbean Gardens property.
This loan had to be repaid by December 5, 2006.
On November 15, 2005, item 10E, the Board approved an Agreement of Sale and
Purchase of the land housing Caribbean Gardens and adjoining 100 plus acres of
environmentally sensitive lands. Conservation Collier was interested in acquiring
portions of the land as well as Parks & Recreation department through a Florida
Communities Trust Grant. Also at this Board meeting, item 10F was approved,
authorizing a $7.2 million loan (Loan # A-33-1) from the Commercial Paper Program.
On November 28, 2006, item 10C, the Board approved the refinancing of Commercial
Paper Loan # A-32-1) and authorized a loan (Loan # A-33-2) from the Commercial
Paper Program in the amount not to exceed $32.9 million.
On January 24, 2007, Item 10(H), the Collier County Board of County Commissioners
approved a $7,000,000.00 prepayment on Caribbean Gardens Commercial Paper Loan
A-32-2. While approving Item 10(H), the Board requested that County and Clerk staff
place debt prepayment proposals on the Board of County Commissioners' agenda.
The prepayment proposed in this executive summary will be scheduled for August 3,
2009, contingent upon Board approval. This payment is the final payment on this debt
service and will extinguish this debt. This prepayment proposed in this executive
summary will be the eighth and final prepayment made on this loan. Attached as Exhibit
1 is the prepayment history on the Caribbean Gardens loan, including the proposed
$1,735,000 outlined in this executive summary.
Collier County voters approved to tax themselves 0.15 mils, for ten years to pay off $40
million in debt for the acquisition of land which houses Caribbean Gardens. With our
t
aggressive management of prepaying down principal over the past 4 years, the
taxpayers in Collier County will no longer be levied 0.15 mils.
FISCAL IMPACT: The current principal reduction request will be for $1,735,000 and this
will be the final payment on this debt service. Funds are available and budgeted in
Caribbean Gardens Debt Service Fund 220.
GROWTH MANAGEMENT IMPACT: There is no growth management impact.
RECOMMENDATION: That the Board of County Commissioners approves the
prepayment of the Caribbean Gardens related debt, as outlined above.
Prepared by: Mark Isackson, Senior Budget Analyst
Office of Management and Budget
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..i c,;, 2 t~rn r, -j 16F13
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COLLIER COUNTY
SOARD r,,F COUNTY CCWCSSiCNERS
Item Number: 16;713
Item Summary: Pecomrnendatiom that the Board approves prepayn-,ent of the CanboEear, Gardens
Commercial Paper L-,arl in the amount of $1,7-25,0,20
Meeting Date: 7,'28120,D9 9.00,0C A10
Approved By
OMB Coordinator
10"NO Coordinator
Dale
County flianager's Office
Dfffi,7e of Mianagernent & Budget
7116/2009 2:14 PM
Approved By
Jeff Fliatzkow
County Attorney
Date
,—cunty Attorney
County Attorney Office
71'16,'20-19 3:29 PPJI
Approved By
Mark isao-kson
Budget Analyst
Date
County Manager's Office
Office of 1�4anaaerrient & Budget
7i2l'12,009 8:46 AM
Approved By
Leo E. Ochs, Jr.
Del—uty County Manager
Dute
Board of County
County IManager's Oflk;e
7!20,,'2009 '10:23 AM
Corni-nissioners
fi I e:17C:\ A gen daTe st\F.x r)o rt\ 13 3 -.1 u I v %'-) 0 2 9 - 940- 0 20 0 9\ 16 0 C ON FN'I'%? n A G FN D A I
.. .�. E F 13
Exhibit 1
Collier County, Florida
Caribbean Gardens Loan Prepayment
As of July 2009
Beginning loan balance 35,900,000.00
First prepayment, 12/4/2006
(3,000,000.00)
Second prepayment, 1/26/2007
(7,000,000.00)
Third prepavment R /7 /'Jnn7
(1,000,000.00)
Fourth prepayment, 9/25/2007
(1,565,000.00)
Fifth prepayment, 4/23/2008
(11,000,000.00)
Sixth prepayment, 9/11/2008
(1,100,000.00)
Seventh prepayment, 4/01/2009
(9,500,000.00)
Current loan balance, due 12/6/2011
1,735,000.00
Eighth (final) prepayment proposed (1,735,000.00)
Proposed loan balance, due 12/6/2011 0
I Hem No. 16,F13
^.
July n 200-
COLLIER COUNTY
OFFICE OF MANAGEMENT & BUDGET
3301 East Tamiami Trail • Naples, Florida 34112 • (239) 252 - 8973 *FAX: (239) 252 -8828
July 9, 2009
Elizabeth Newberry
Florida Association of Counties
P.O. Box 549
Tallahassee, Florida 32302
VIA EMAIL: enewberry@fl- counties.com
Dear Elizabeth:
Please accept this memorandum as notice for preliminarily scheduling a principal
paydown of $1,735,000.00 for August 3, 2009 in the Florida Local Government Finance
Commission's Commercial Paper Program. The paydown should be applied as outlined
in the following draw and maturity schedule:
Draw Amount nriafna! Maturity Date
A -32 -2 $1,735,000.00 December 6, 2011
The Collier County Board of County Commissioners' adopted FY -2009 budget related to
commercial paper debt was predicated on principal reduction and final approval of this
prepayment is scheduled for July 28, 2009. Please note that this is the final payment on
Note 32 -2. Should you have any questions, please feel free to contact me, Derek M.
Johnssen, at (239) 774 -8350, direct.
Sincerely,
Derek M. Johnssen
- ft�ark Isackson
General Accounting Manager Senior Budget Analyst
cc: Crystal K. Kinzel, Director of Finance and Accounting