Subject:
Title
Resolution authorizing a loan in a principal amount of not-to-exceed $34,000,000.00 from the Florida Local Government Finance Commission (FLGFC) pursuant to its Pooled Commercial Paper Loan Program (Loan Program) in order to provide interim financing for various capital improvements to the County’s Solid Waste Disposal Facilities.
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Fiscal Impact:
This loan shall be repaid from the designated non-ad valorem Solid Waste Disposal assessment revenues and will be secured by a covenant of the County to budget and appropriate sufficient non-ad valorem revenues in accordance with the terms of the Loan Agreement. This non-ad valorem obligation shall not be deemed a pledge of faith and credit, or taxing powers of the County and no ad valorem taxes will secure or pay debt service on the loan.
Dept/Office:
Solid Waste Management Department
Requested Action:
Recommendation
It is requested that:
• The Board of County Commissioners adopt a Resolution authorizing staff to seek a Pooled Commercial Paper Loan not-to-exceed $34,000,000.00 in principal amount, and;
• Authorize the Chairman to execute the Resolution and various closing documents with respect to the issuance of the Loan, and;
• Authorize the County Manager to approve all necessary and appropriate budget change requests to implement this request and allocate these and existing funds to the appropriate Capital Improvement Program projects listed.
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Summary Explanation and Background:
On November 12, 2024, the Board of County Commissioners approved a revised engineering study needed to support the Solid Waste Management Department’s ongoing five-year Capital Improvement Program (CIP). Based on current construction costs and the cash flow timing associated with the five-year CIP projects, it is recommended that a short-term commercial paper loan under the Loan Program be incurred in order to finance the immediate ongoing and upcoming projects:
• Completion of Phase 1, U.S. 192 Site Development - Earthwork, Wetlands, Stormwater, Roads, and Underground Utilities for Class III Landfill of $11,980,343.00
• Completion of Titusville Transfer Station Site Work and Transfer Station Building Construction of $5,602,835.00
• To begin Construction and Oversight of the Central Disposal Facility, South Parcel - Construction of Class I Landfill Cell 3 of $15,765,000.00.
The above estimate of funding needed for Fiscal Year 2025-2026 is based on the drawdown schedules of the two current contracted and ongoing projects (US192 and Titusville Transfer Station) and the engineer’s estimate of costs to begin the construction/oversight of Central Disposal Facility South Parcel Cell 3.
Brevard County entered into a Loan Agreement with FLGFC under the Loan Program on January 30, 2013. This loan program was created to benefit counties in a pooled commercial paper program to obtain cost-effective, short-term financing for acquiring, constructing, and equipping capital improvements. The current all-in rate, which includes interest rates and fees, is 3.87%. It is expected that this short-term loan will be refinanced through the issuance of long-term tax-exempt revenue bonds in Fiscal Year 2026-2027. Debt service payments will be funded from Solid Waste Disposal non-ad valorem assessment revenues.
This request has been reviewed and approved by the County Manager, Attorney, Finance Director, Budget Director, Solid Waste Director, County Bond Counsel, and Financial Advisor.
Clerk to the Board Instructions:
Please sign and attest three (3) copies of the resolution and return two (2) originals to the Solid Waste Management Department.