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County Administrator's Report 12. 13.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	07/18/2019
Issue: Interfund Loan for Innerarity Island Sewage System Improvements MSBU Project
From:	STEPHAN HALL
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning the Interfund Loan for the Innerarity Island Sewage System Improvements MSBU - Stephan Hall, Budget Manager, Management and Budget Services

That the Board take the following action concerning an interfund loan for the Innerarity Island Sewage System Improvement Project, partially funded by a Municipal Service Benefit Unit (MSBU):

A. Approve an interfund loan from the Local Option Sales Tax (LOST) III Fund (352), to the MSBU Assessment Program Fund (177), in the amount of $5,605,174, to pay costs associated with improving the Innerarity Island sewage system. The interfund loan will have a maximum repayment schedule of 10 years, or a term determined by amendment to the originating MSBU Ordinance, or by a Resolution setting the non-ad valorem special assessment, and be repaid from MSBU assessments collected from property owners; and

B. Adopt the Resolution approving Supplemental Budget Amendment #207, MSBU Assessment Program Fund (177), in the amount of $5,605,174, to recognize the proceeds of the interfund loan, and to appropriate these funds for the Innerarity Island Sewage System Improvement Project.

BACKGROUND:

On March 2, 2017, the Board approved an Ordinance creating the Innerarity Island Development Corporation (IIDC) Sewage System Improvement MSBU so that the County could complete sewage system improvements and assess benefitting property owners for the project costs. The project is also partially funded by a Grant from the Federal Department of Environmental Protection. The project is primarily overseen and managed by Emerald Coast Utilities Authority (ECUA). ECUA will complete the work before MSBU assessments are collected from the benefitting property owners, therefore an interfund loan from LOST III is necessary to provide temporary project funding. $5,450,484 is allocated to construction costs, and $154,690 is allocated to the purchase of grinder pumps.

The loan will be repaid as MSBU Assessments are collected over the MSBU term.

BUDGETARY IMPACT:

This Amendment will increase Fund 177 by $5,605,174.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

The Board must approve interfund loans.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
SBA #207
Investment Policy Disclosure