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TO:_ Members of the Board <br />of County Commissioners <br />DATE: September 14, 1992 <br />SUBJECT: PAYING OFF ROUTE 60 SEWER BONDS <br />CONSENT AGENDA <br />FROM: Joseph A. Baird6�� <br />OMB Director �W <br />DESCRIPTION AND CONDITIONS = <br />Indian River County issued $5,165,000 ten year assessment bonds in 1986 to construct the <br />Route 60 Sewer Project.. The County currently owes $1,398,839 in principal on the bond <br />at this time and has a cash balance of $825,413.85 in the Route 60 Sewer debt fund Staff <br />feels it would be to the County's benefit to pay-off the bonds for the following reasons: <br />1. The bonds are at the rate of 8.479o, a considerably higher interest <br />rate than we are earning on our funds at this time. (A negative <br />arbitrage situation.) <br />2. Elevate reporting requirements on the bonds. <br />ANALYSIS <br />The Route 60 bonds can be paid off on September 24, 1992 for $1,485,725.55. <br />$1,398,839.00 - Principal <br />$ 86.886.55 - Accrued Interest <br />$1,485,725.55 TOTAL <br />Staff is recommending that we pay off the bonds utilizing the following sources: <br />$ 825,413.89 - Fund 206 Route 60 Sewer Bond Funds <br />$ 219,303.52 - Fund 473 Utility Assessment Fund* <br />$ 441.008.14 - Fund 471 Utility Operating Fund. <br />$1,485,725.55 - TOTAL <br />*(remaining Route 60 water proceeds) <br />RECOMMENDATION <br />Staff recommends that the Board of County Commissioners authorizes staff to pay-off the <br />Route 60 bonds as outlined above. <br />ON MOTION by Commissioner Scurlock, SECONDED by <br />Commissioner Bird, the Board unanimously (4-0, <br />Chairman Eggert being absent) authorized staff to <br />pay off the Route 60 bonds as outlined in staff's <br />memorandum. <br />21 >� <br />boo! w�E 7 <br />