Agenda 11/10/2020 Item #16F 2 (Early Retirement of the Forest Lakes Roadway & Drainage MSTU, Series 2007 Limited General Obligation Bonds)11/10/2020
16. F.2
EXECUTIVE SUMMARY
Recommendation to approve the early retirement of Collier County, Florida, Limited General
Obligation Bonds (Forest Lakes Roadway and Drainage Municipal Service Taxing Unit), Series
2007, and authorize necessary budget amendments
OBJECTIVE: To utilize Forest Lakes Municipal Services Taxing Unit (MSTU) debt service reserves to
retire the Collier County, Florida, Limited General Obligation Bonds (Forest Lakes Roadway and
Drainage Municipal Service Taxing Unit), Series 2007.
CONSIDERATIONS: On September 6, 2006, the Board adopted Resolution No. 2007-242 providing
for a referendum to determine if the electors of the Forest Lakes MSTU would approve the issuance of
bonds to finance roadway lighting, drainage and restoration. On November 7, 2006, a bond referendum
was held and the issuance of up to $6,250,000 of limited general obligation bonds was approved by a
majority of the electors.
On September 11, 2007, the Board adopted Resolution No. 2007-246 approving the issuance of
$6,250,000 in limited general obligation bonds to finance capital improvements within the Forest Lakes
MSTU.
Bond debt service payments occur on January 1 st and July 1st. The final principal and interest payments
are scheduled for January 1, 2022. Existing debt service reserves provide sufficient funding to allow the
bond to be retired on January 1, 2021 with no early redemption fee, one year ahead of schedule.
FISCAL IMPACT: Executing the bond retirement on January 1, 2021 will require early redemption of
the January 1, 2022 principal payment of $540,000.00. The early retirement will eliminate the July 1,
2021 and January 1, 2022 interest payments totaling $22,950.00.
Forest Lakes MSTU, Series 2007, Limited General Obligation Bonds debt service budget is provided in
Fund (259). Funding for the early redemption will be provided from debt service reserves. A budget
amendment will be required moving Fund (259) reserves of $540,000.00 into the debt service payment
budget. Additionally, to ensure sufficient cash availability on the date of the payment a transfer from
Forest Lakes MSTU Operating Fund (159) to Fund (259) will be established. Residual funding remaining
in debt service Fund (259) will be transferred to Forest Lakes Operating Fund (159).
GROWTH MANAGEMENT IMPACT: The proposed actions have no Growth Management impact.
ADVISORY BOARD RECOMMENDATION: The Forest Lakes MSTU Advisory Committee will
review this item at their November 10, 2020 meeting.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality and requires a majority vote for approval. -JAK
RECOMMENDATION: That the Board of County Commissioners approves early retirement of Collier
County, Florida, Limited General Obligation Bonds (Forest Lakes Roadway and Drainage Municipal
Service Taxing Unit), Series 2007, and authorizes necessary budget amendments, resulting in interest
savings of $22,950.00.
Prepared By: Edward Finn, Sr. Management & Budget Analyst
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16. F.2
11/10/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.2
Doe ID: 14052
Item Summary: Recommendation to approve the early retirement of Collier County, Florida,
Limited General Obligation Bonds (Forest Lakes Roadway and Drainage Municipal Service Taxing
Unit), Series 2007, and authorize necessary budget amendments
Meeting Date: 11/10/2020
Prepared by:
Title: — Office of Management and Budget
Name: Debra Windsor
10/28/2020 3:41 PM
Submitted by:
Title: Division Director - Corp Fin & Mgmt Svc — Budget and Management Office
Name: Mark Isackson
10/28/2020 3:41 PM
Approved By:
Review:
Office of Management and Budget
County Attorney's Office
Budget and Management Office
Budget and Management Office
County Manager's Office
Board of County Commissioners
Debra Windsor
Level 3 OMB Gatekeeper Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Mark Isackson
Additional Reviewer
Ed Finn
Additional Reviewer
Sean Callahan
Level 4 County Manager Review
MaryJo Brock
Meeting Pending
Completed
10/28/2020 3:42 PM
Completed
10/29/2020 10:27 AM
Completed
10/29/2020 1:45 PM
Completed
10/29/2020 2:16 PM
Completed
11/03/2020 10:23 AM
11/10/2020 9:00 AM
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