HomeMy WebLinkAbout2004 09 20 Regular 509
COMMISSION AGENDA
ITEM 509
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
<-Y;)
September;;.(,2004
Meeting
MGR ~/DEPT
Authorization
REQUEST: The City Manager is requesting that the City Commission give authorization to
enter into a temporary loan or line of credit agreement to fund Hurricane related
expenses until the Federal and State reimbursements can be received.
PURPOSE: The City Manager is requesting that the City Commission give authorization to enter
into a temporary loan or line of credit agreement to fund Hurricane related expenses
until the Federal and State reimbursements can be received.
CONSIDERATIONS: Due to Hurricane Charley and Frances, the City estimates the total
preparation to clean-up costs to be close to $6.5 Million, all of which would need to be
paid up front by the City. The City's portion of these costs is estimated to be $1.2
Million. These amounts, however, do not include any estimated costs associated with
Hurricane Ivan. Once these invoices are paid, the City would seek reimbursement
from the Federal Emergency Management Agency (FEMA) and the State of Florida
for their share of these costs. Rather than depleting the City's Fund Balances, the City
would like to engage our Financial Advisor, Public Financial Management, Inc., to
secure a short-tenn loan or line of credit to pay these expenses. The entire process
from bid to closing the line of credit should take approximately three (3) weeks.
FUNDING: Funding would be through a short-tenn bank loan or line of credit to be paid back by
reimbursements from FEMA and the State.
RECOMMENDATION: The City Manager recommends that the City Commission give
authorization to enter into a temporary loan agreement to fund Hurricane related
expenses until the Federal and State reimbursements can be received.
ATTACHMENTS: None
COMMISSION ACTION: