2010 Debt Report - Volusia County Government

COMMERCIAL PAPER LOAN PROGRAM (CONT’D)
commercial paper loan program are projects involving short-term loan borrowing under five years.
Commercial paper is a variable rate instrument ranging from one day to 270 days in duration. The
commercial paper is marketed in New York by Morgan Stanley & Company. The rate varies, depending
on market conditions on the day of the sale, but has historically been very low.
The FLGFC Program has been effectively offline since the end of 2008. However, FLGFC continues to
work diligently to revamp the 20-year f1agship program and is committed to preserving the principles of
low-cost, simplified access to the debt market for Florida’s local governments. The program is expected to
be back online by October 2011.
For FY 2008-2009, the County planned to borrow $18,685,000 from the FLGFC’s commercial paper
program. In late September 2008, just prior to closing the loan, the County was informed that Wachovia
Bank N.A. would not be extending its letter of credit beyond February 9, 2013, and would not be
approving any new loans under the Program. The letter of credit provided liquidity and credit support for
the FLGFC’s commercial paper which back loans made to the local Florida governments. Wachovia had
previously committed to funding this loan; however, the borrowing was delayed several months, finally
closing on December 30, 2008. These loans are annotated with an *.
Several loans in FY 2009 had balloon payments due to the limited term of Wachovia’s letter of credit at
the time of the original financing. These loans were refinanced with Wachovia thru the commercial paper
program and are annotated with #.
STATE REVOLVING FUND (SRF) LOAN PROGRAM
The State of Florida, pursuant to Section 403.1835, Florida Statutes, makes low cost loans to local
governments to finance the construction of wastewater pollution control facilities. Eligible projects
include new construction and/or improvements to wastewater sewer systems, sewerage pump stations,
sewerage treatment facilities, reclaimed water reuse facilities, storm water management facilities, and
estuary protection facilities. Disbursements are made to project sponsors after costs are incurred. Interest
rates on these projects ranged from 2.99% - 3.24%. These loans are for a 20 year term.
LOAN DESCRIPTION
INTEREST
RATE
ORIGINAL
LOAN AMOUNT
BALANCE
OUTSTANDING
FINAL
PAYMENT DATE
SE Wastewater Facilities 3.24% $9,023,326 $4,622,952 02/15/2020
Deltona North Water
Reclamation Facility
SW Regional Water
Reclamation Facility
SW Regional Water
Reclamation Facility
Expansion
2.99% 1,776,210 739,605 06/15/2017
3.05% 2,993,386 1,703,342 05/15/2020
3.05% 9,849,963 6,651,902 06/15/2022
Total $13,717,801
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