Subject:
Title
Resolution authorizing a loan in a principal amount of not-to-exceed $17 million from the Florida Local Government Finance Commission ("Florida Local") pursuant to its Pooled Commercial Paper Loan Program (the "Loan Program") to finance capital projects and land purchases under the County’s Environmental Endangered Lands Program
End
Fiscal Impact:
The loan shall be repaid from the designated Environmental Endangered Lands debt millage 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. It is estimated that the repayment of this loan will not exceed $1.4 million annually.
Dept/Office:
Central Services/Parks and Recreation
Requested Action:
Recommendation
It is requested that the Board of County Commissioners approve:
1. The Resolution authorizing the borrowing of an amount not-to-exceed $17 million in principal from Florida Local pursuant to the terms of the County's existing Loan Agreement with Florida Local and JPMorgan Chase Bank, N.A.; and
2. Authorize the Chair to execute the Resolution and the various closing documents with respect to the issuance of the loan: and
3. Authorize the County Manager to approve all necessary budget amendments to appropriate funds to capital projects and land purchases under the County’s Environmental Endangered Lands Program.
End
Summary Explanation and Background:
In 2024, the Board of County Commissioners (the Board) approved a $3 million bank loan with a 4.5% interest rate for initial land acquisition, with a specific focus on lands that directly benefit the Indian River Lagoon and the St. Johns River. Currently, approximately $2.9 million of the $3 million bank loan has been encumbered for the purchase of land that meets the Board’s criteria to purchase under the County’s Environmentally Endangered Lands program. Additional properties estimated at $6.8 million are currently in the negotiation/appraisal process.
As part of the Board’s Adopted FY 2025-26 Budget, the Board authorized the issuance of bonds to fund capital improvements to existing facilities, including upgrades to the trailhead and parking areas at Scottsmoor Flatwoods, enhancements to the equestrian dirt parking at Malabar West, and the construction of observation towers at Pine Island Conservation Area, Ulumay Wildlife Sanctuary, and the Barrier Island Sanctuary. These projects provide residents with enhanced opportunities to enjoy these protected areas. Additionally, the Board approved a rubric for evaluating land acquisitions that directly benefit the Indian River Lagoon and St. Johns River and hired a land acquisition consultant to facilitate these purchases. Land Acquisition efforts will continue, funded by revenues generated from the Board-adopted millage rate associated with the debt portion of the Environmentally Endangered Lands program.
The Board entered into a Loan Agreement with Florida Local under the Loan Program on January 30, 2013. This loan agreement was created to benefit counties in a pooled commercial paper program by providing cost-effective, short-term financing for the acquisition, construction, and purchase of land. The six-month current all-in rate, which includes interest rates and fees, is 3.27%. The all-in rate charged by the Florida Local under its Loan Program provides the County with a lower rate than it would incur if it took out another bank loan.
Staff recommends using the Florida Local program on a drawdown basis, which will provide flexibility to draw funds to coincide with the Board’s approval of the land purchase. Debt payment will be funded from the Environmental Endangered Lands Program debt millage.
Clerk to the Board Instructions: