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Summary:
The City has been the recipient of several Florida Department of Environmental Protection (FDEP) State Revolving Fund (SRF) loans to help finance the construction of wastewater capital improvement projects. The resolution to apply for the State Revolving Loan Fund (SRF) Program tied to Loan Agreement WW650040 was approved by City Council on October 25, 2004. The Wastewater Facilities and Capital Financing Plan was approved by City Council on June 21, 2004. SRF Loan Agreement WW650040 was approved by City Council on April 17, 2006, to fund work tied to Eastern Regional Reclaimed Water Distribution System and the planned Conserv I Flow Diversion projects. Four previous amendments to the Agreement were approved by City Council on the following dates: November 13, 2006; August 4, 2008; December 15, 2008; and December 14, 2009. Loan Amendment 5 is being proposed to remove the long delayed Conserv I Flow Diversion Project from this Agreement and place it under a new Loan Agreement (under another Council Item) at a significantly reduced interest rate. The net reduction in project proceeds for Loan WW650040 is $15,230,360. |
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Fiscal & Efficiency Data:
Under Amendment 5 to SRF Agreement WW650040, the loan amount would be reduced by $15,230,360 for a new total of $13,800,000. The loan service fee will be reduced down to $276,000 and accrued capitalized interest is $122,530, for a total amount to repay of $14,198,530. The interest rate on Loan Agreement WW650040 and Amendments 1-4 ranges from 2.49-2.69 percent. The semi-annual loan payment drops to $455,916 (down from $994,072) after adjusting for the revisions and payments received to date. As a result of the shift of Conserv I Flow Diversion Project to Loan Agreement WW650041 (covered in a separate Council Item), the City gains an annual net debt service savings of $225,160.
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Recommended Action:
Approval of Amendment 5 to Loan Agreement WW650040 and authorization for the Mayor and City Clerk to execute same, subject to review and approval by the City Attorney's Office. |
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Agenda Item attachment(s) on file in the City Clerks Office.
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Note:
All agenda items must
be in the City Clerk's office by Noon Friday, six(6) business days prior to the
regular Monday City Council meeting.
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Contact:
James Varnado, OBFS
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Approved By:
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Department
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Date and Time
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| Budget Outside Routing Approval |
3/12/2015 8:38 AM |
| City Clerk |
3/12/2015 9:04 AM |
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