HomeMy WebLinkAbout2009 02 23 Consent 202 Tuskawilla Lighting and Beautification District Transfer of Residual Equity FundsCOMMISSION AGENDA
ITEM 202
February 23, 2009
Meeting
REQUEST:
CONSENT X
INFORMATIONAL
PUBLIC HEARING
REGULAR
M r. /De t. ~ -'
Authorization
The Community Development and Finance Departments are requesting approval for a
transfer of residual equity from the Tuscawilla Lighting and Beautification District
(TLBD) Phase II Improvements Fund (313) to the TLBD Phase II Debt Service Fund
(213) and approval to apply those funds as a principal prepayment toward the debt of the
Phase II Capital Project.
PURPOSE:
The purpose of this agenda item is to request approval from the City Commission for a
transfer of residual equity from the TLBD Phase II Improvements Fund (313) to the
TLBD Phase II Debt Service Fund (213), in an effort to retire debt related to the TLBD
Phase II Capital Project earlier than scheduled.
CONSIDERATION:
The TLBD Phase II Capital Project, consisting of the installation of decorative
street lights and signs along ten (10) primary roadways within Tuscawilla, was completed and
all obligated funds expended as of October 2008. At project completion, a fund balance of
more than $37,000 was available in the TLBD Phase II Improvements Fund (313).
On January 21, 2009, at a regular meeting, the TLBD Advisory Board voted
unanimously to recommend the transfer of residual equity from Fund Balance of the TLBD
Phase II Improvements Fund (313) to the TLBD Phase II Debt Service Fund (213}, and to
apply the same as a principal pre-payment toward the debt service created from construction
of the TLBD Phase II Capital Project. Since this time additional interest has been earned
bringing the residual equity total to $37,800.
As of February 4, 2009, a balance of $285,700, plus accrued interest, remains
outstanding on the loan for the TLBD Phase II Capital Project. A principal pre-payment in
the amount of $37,800, plus any additional interest earned, is available and could be made
prior to the July 1, 2009 scheduled payment due date, with capital funding left over from
construction of the project. Apre-payment in this amount will reduce the loan balance by
more than thirteen percent (13%) and allow for the debt to be retired earlier than the original
fifteen (15) year amortization schedule; concurrently, resulting in a reduction of interest paid
by each applicable member of the TLBD.
FUNDING:
Funding for a transfer of residual equity from Fund Balance of the TLBD Phase II
Improvements Fund (313) to the TLBD Phase II Debt Service Fund (213), in the amount of
$37,800 plus any additional interest earned, and funding to apply the same amount as a
principal pre-payment toward the debt service is currently available.
RECOMMENDATION:
Staff recommends the City Commission authorize a transfer of residual equity
from Fund Balance of the TLBD Phase II Improvements Fund (313) to the TLBD Phase II
Debt Service Fund (213), in the amount of $37,800 plus any additional interest earned. Staff
also recommends the City Commission authorize a principal pre-payment of the same
amount toward the outstanding balance of the TLBD Phase II Capital Project Loan to be sent
to the lending institution prior to July 1, 2009.
IMPLEMENTATION SCHEDULE:
Staff will implement the necessary transfer of funds and corresponding principal
pre-payment upon approval by the City Commission.
ATTACHMENTS:
COMMISSION ACTION: