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Council approves $12.59M interim loan to bridge South Lake Regional Park reimbursements
Summary
To bridge timing between construction expenditures and Lake County reimbursements, Groveland approved a $12.59 million interim financing note at 3.70 percent; council voted unanimously to proceed with loan documents.
Groveland's City Council unanimously approved interim financing July 6 to reimburse costs incurred for the South Lake Regional Park Phase 1B project while the City awaits scheduled Lake County reimbursements.
PFM Financial Advisors presented a competitive solicitation that produced a proposed Capital Improvement Revenue Note, Series 2026A, with Flagstar Public Funding Corp. offering the lowest interest rate at 3.70 percent. The loan principal is not to exceed $12,588,750, with estimated interest approximately $1.48 million and expected issuance costs around $70,000.
Interim City Manager Timothy Maslow and finance staff explained the financing bridges timing differences between reimbursements and project expenditures under the interlocal agreement with Lake County, which committed roughly $20.5 million in reimbursements over an eight-year period. Staff said the loan amortization was structured to align with the County's reimbursement schedule to minimize interest expense.
Council members asked about total interest cost and long-term funding options; staff said financing costs would likely be evaluated across multiple years and may use the General Fund if other sources are not available. The motion to approve the note passed unanimously.
