SUBJECT
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Principal and Interest Payments on LOC (Action Item)
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DESCRIPTION
The PRWC Line of Credit (LOC) has a $121,000 balance from funding activities that support PRWC efforts but are not otherwise covered by SWFWMD grants or the SRF loan. This agenda item proposes two scenarios for a repayment schedule.
The current Southeast and West Polk Business plan, dated July 2022, proposed that LOC interest and principal payments begin in FY 2023. However, during recent Funding Work Group discussions, members have indicated that their respective FY 2023 budgeting processes are essentially complete, and requested that an alternative schedule be presented. In response, a comparison showing member costs if payments begin FY 2023 versus FY 2024 was prepared with the following results:
1. Individual member annual allocations with first payment beginning in FY 2023, for a total of $659,377 for FY 2023 and FY 2024.
2. Individual member allocations for FY 2023 deferred to FY 2024, for a total of $670,123 for FY 2024.
3. Difference in two scenarios: $10,746.
The Funding Work Group and Technical Advisory Committee both recommend the deferral to FY 2024.
The table above provides a summary of the cost to defer LOC payments for FY 2023 to FY2024.
RECOMMENDATION
Approval to defer FY 23 member payments to FY 2024 to allow for members to budget for the payment.
FISCAL IMPACT
The fiscal impact to defer the payments is $10,746.
CONTACT INFORMATION
Eric DeHaven
Robert Beltran