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Board of Commissioners <br />Page 2 of 2 <br />(W July 10, 2013 <br />Estimated Interest Earnings — General Fund <br />A <br />Year <br />Investment <br />Portfolio <br />Earnings 1.0% <br />Interfund <br />Loan Interest <br />2.5% <br />Net Interest <br />Earnings <br />Gain/ Loss <br />2014 <br />$15,650 <br />$39,125 <br />$23,475 <br />2015 <br />$9,800 <br />$24,500 <br />$14,700 <br />2016 <br />$3,800 <br />$9,500 <br />$5,700 <br />Totals <br />$29,250 <br />$73,125 <br />$43,875 <br />In the future, staff may recommend an additional interfund loan to cover the replacement of the <br />irrigation system on the Dunes course (estimated cost $950,000). This system was installed when the <br />course originally opened in 1987, and it is now well beyond its life expectancy- of twenty- years. Over the <br />last few years, maintenance costs for this system have increased substantially. <br />Staff Recommendation <br />Staff recommends that the Board of Commissioner authorize staff to begin the process of calling the <br />remaining Recreational Revenue Refunding Bonds, Series 2003 in the amount of $1,565,000 that <br />become callable on September 1, 2013. Staff further recommends that the Board authorize an <br />interfund loan from General Fund reserves in the amount of $1,565,000 at an interest rate of 2.5% per <br />year. This loan will be repaid by the Golf Course on the same schedule as the current bond issue (see <br />attached debt service schedule). Staff also recommends that the Board authorize a budget <br />amendment to allocate funding for this transaction from General Fund Cash Forward. <br />Attachments <br />Golf Course Bond Payoff- Estimated Savings from Interfund Loan <br />Golf Course Bond Payoff- Proposed Debt Service Schedule <br />APPROVED AGENDA ITEM: <br />BY:a-<23"U?d <br />Jos ph A. Baird <br />County Administrator <br />FOR: July 16, 2013 <br />Indian River County <br />Approved <br />Date <br />Administrator <br />W <br />-711,111-3 <br />County Attorney <br />-23 <br />Budget <br />Department <br />174 <br />