State Bond Loan Program

 

The State Bond Loan Program is jointly administered by the Department of Environmental Protection and the Division of Bond Finance of the State Board of Administration. Any municipality, county, authority, or district, or subagency of these entities, may obtain funding for projects. Water supply and distribution facilities, stormwater control and treatment projects, air and water pollution control, and solid waste disposal facilities are eligible.

Up to $300 million in State of Florida, tax exempt, full faith and credit, Pollution Control Bonds may be issued annually at market rates. The costs associated with issuing bonds are low and local agencies benefit from the strength of the state’s credit rating. Bond proceeds are then loaned to local governments. Funds are disbursed to local agencies as expenses are incurred by the local agencies. Funds held by the State are invested for the benefit of the local agencies. Arbitrage compliance is generally managed by the State. Applicants are served on a first come, first served basis.

Loan Terms

The period over which loans may be repaid is negotiable and is generally representative of the useful life of the project. The loan interest rate and repayment period are the same as that on the State bonds. Repayments are made semiannually. The pledged revenues usually are generated by the utility being improved by the project facilities. Interest during construction may be capitalized.

What has to be Done to get a Loan?

The applicant provides the following information to the Department of Environmental Protection before bonds can be validated and sold by the State Board of Administration (Division of Bond Finance):

1. A resolution authorizing the application, loan amount, and pledge of revenues.
2. Ordinance(s) authorizing the rates, charges, and fees to be collected as pledged revenues.
3. Schedule for completing the project, loan disbursements, and loan repayments.
4. Legal opinions as to the availability of pledged revenues and the right to increase rates.
5. A description of the local economic situation and existing/anticipated debt affecting the availability of pledged revenues.
6. Audited financial statements and interlocal agreements.
7. An engineering report describing the history and organization of the utility, service area, planning period, existing facilities, capital improvement program, project description, cost estimate, need for the project, number of customers, utility billing, and utility income and expenses.
8. Plans and specifications, permit status, and confirmation of consistency with the local comprehensive plan.

Do you have a question on the program?
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