HomeMy WebLinkAbout2015 05 13 Proposed CIPHOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM
Council Meeting Date: 13 May 2015
Agenda Item Title: Report/Discussion to replace Golf Course Irrigation system and
other improvements.
Recommendation: Modify and/or approve Plan
Background: The Sebastian Municipal Golf Course irrigation system is 35+
years old. Its age and inefficient coverage of the course has led
to increased costs and loss of valuable turf. It is well
established in the golf course business that the condition of the
course, especially tees and greens, result in greater revenue
growth. In an effort to keep SMGC competitive, Staff is
prepared to offer a proposal that would install a new irrigation
system, rebuild/modernize the restrooms, provide electric
power to the restrooms, and rebuild county water lines to the
restrooms. Funding for the project is estimated to be
approximately $1.3M. Staff is attempting to fund the entire
project `internally.' Attached is a proposed 20 year `loan' from
the Building Fund to SMGC representing a sizeable portion of
the project. Other funding would be from Discretionary Sales
Taxes (DST). Another funding option would be with a
commercial bank. Current rates with that option would be in
the 3.5% to 4% range. This would be a FY16 project.
If Agenda Item Requires Expenditure of Funds:
Total Cost: As Needed
Amount Budgeted in Current FY: -0-
Fund to Be Utilized for Appropriation: various
Administrative Services Department Review: 1
Attachments:
Loan spreadsheet
City Manager Authorization:
t
Date: 06 May 2015
LOAN TO GOLF COURSE FROM BUILDING FUND
$700,000 for 20 Years - Rate of 1.30%
Fiscal Year
Total Payments
Interest
Principal
2016
39, 765.80
8,916.62-
30, 849.18
2017
39, 765.79
8,513.18
31, 252.61
2018
39,765.79
8,104.47
31,661.32
2019
39,765.79
7,690.41
32,075.38
2020
39,765.79
7,270.94
32,494.85
2021
39,765.79
6,845.98
32,919.81
2022
39,765.79
6,415.46
33,350.33
2023
39,765.80
5,979.32
33,786.48
2024
39,765.80
5,537.47
34,228.33
2025
39,765.80
5,089.84
34,675.96
2026
39,765.79
4,636.35
35,129.44
2027
39,765.79
4,176.94
35,588.85
2028
390765.80
3,711.52
36,054.28
2029
39,765.79
3,240.01
36,525.78
2030
39,765.79
2,762.33
37,003.46
2031
39,765.79
2,278.41
37,487.38
2032
39,765.79
1,788.16
37,977.63
2033
39,765.79
1,291.50
38,474.29
2034
39,765.79
788.34
38,977.45
2035
39,765.80
278.61
39,487.19
Totals
795,315.86
95,315.86
700,000.00
The proposed work at the Golf Course is estimated to cost as much as $1.3
Million. $600,000 of this will be funded by Discretionary Sales Taxes, with
the $700,000 balance financed by a loan from the Building Department
Fund. This keeps the amount of annual debt service within an amount we
believe the Golf Course Fund can afford. The Building Department has
accumulated about $1 Million in cash and this is an opportunity for it to get a
higher return on a substantial amount of those balances. The interest rate is
1% less that the current 20 year yield on U.S. Treasury Bonds and will be
adjusted every 5th year to insure the Building Department is able to achieve
a comparable return at that time. By using this means to provide the Golf
Course with the necessary funding, we can avoid the expense of issuing a
Bank Loan and be able to set a lower interest rate and annual debt service
obligation.