Search and Categories

CAFR….Question #2

Full text…www.lauderdalebythesea-fl.gov

Governmental Activities

promissary notes and lines of credit….

9/2001….LBTS borrowed $10 million at 4.629% interest from Sun Trust Bank

3/2003….this debt was restructured in order to obtain lower interest rates and to obtain additional funding for future capital expenditures authorized by the Town Commission

Town refinanced balance of $8,775,833 at 4.299%…interest rate compounded quarterly from Sun Trust Bank…

5/2003….Town borrowed additional $1.224,167 at 2.933%…interest rate compounded quarterly from Sun Trust Bank,,,,

NOTE: this 5/03 addition brings loan back up to the $10 million…..

9/2011….these notes mature…

5/2003….LBTS established a $3 million dollar line of credit of which $50 thousand was drawn down from Sun Trust Bank at 2.871% interest rate compounded quarterly….

The line of credit was established to facilitate the acquisition of property within the town….

5/2003…LBTS borrowed $1.400,000 at 2.436% interest rate from Sun Trust Bank….this line of credit was established to facilitate acquisition of an off-site building.

5/2008 ….this note matures…

11/2006….this note was paid….

Note: This was for the warehouse west on Commercial… and Dixie Hwy…..which the town is now talking about selling to purchase the hotel next to the development office on A1A….

4/2005….the remaining $2,950,000 was drawn down from at…3.943% interest rate compounded quarterly….

5/2015…the note matures…

10/2005….LBTS borrowed $4 million note at 4.1% interest compounded monthly from Sun Trust Bank

The Town borrowed the funds to facilitate various capital improvement projects throughout the town ….

6/2020….the note matures…

Question #2….

Why do the notes not show a pre-payment penalty on the loan for the capital improvements?

The Town Manager stated at the 5/13/08 commission meeting we have a pre-payment penalty on the loan that was for the capital improvements…covering the Palm Club sewer project…

BCbythesea….opinion….

LBTS should pay down the long- term debt….

LBTS should have a line a credit for any catastrophe….

LBTS should lower its millage rate as much as possible….

whatever we save locally…we save across the board in taxes….

It determines the rate for schools…the county…Hillsboro Inlet….etc….

With the new majority and their financial acumen….

the rate the minority was looking to enact last year should be achievable this year….

Residents should contact their Commissioners and the Mayor with their input on the 2008 budget….

especially the millage rate….

Post Division