TO: Board of Supervisors
FROM: Steve Lederer - Director of Public Works
REPORT BY: Sarah Geiss - Staff Services Analyst I
SUBJECT: Budget Adjustment for MST Community Facility District and Approval to Make an Additional Principal Payment on Debt Service Associated with the Construction of the Recycled Water System
RECOMMENDATION
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Director of Public Works requests approval of a Budget Transfer increasing appropriations in the Community Facility District-MST budget by $2,606,000 from its available fund balance to make an additional, early principal payment against the loan that helped construct the Milliken-Sarco-Tulocay (MST) recycled water pipeline. (4/5 vote required)
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EXECUTIVE SUMMARY
The Milliken-Sarco-Tulocay (MST) Community Facilities District (CFD) has sufficient fund balance to allow for a loan principal pre-payment, which will reduce overall interest and shorten the timeframe to pay the loan in full.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
No
Where is it budgeted?
Community Facility District-MST (Fund 2870)
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
Making a loan principal pre-payment will reduce the amount to be paid in interest and shorten the timeframe to pay the loan in full.
Is the general fund affected?
No
Future fiscal impact:
Appropriations will be budgeted accordingly in future fiscal years for the receipt of the approved taxes and repayment of the loans. First payment of the loan was made on December 31, 2016 (paid on December 31 of each year).
Consequences if not approved:
A loan principal pre-payment will not be made and no change to the current loan amortization will occur.
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The Napa County Board of Supervisors, acting as a responsible agency pursuant to the California Environmental Quality Act (CEQA) and State CEQA Guidelines , Section 15096, considered the environmental effects of the Projec...
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