The agenda for the Monday, May 23, 2016 meeting of the Lake Apopka Natural Gas District Board was filled with routine items.
The newly appointed board members from Apopka, Mayor Joe Kilsheimer and Commissioner Diane Velazquez were seated. Commissioner Velazquez was not present due to a previously scheduled trip that took her out of town. Despite Velazquez’s absence a quorum was present.
The first item after the approval of the previous meeting minutes was the review and acceptance of the amended audit report. The amendment was necessary due to changes in the treatment of pension obligations due to accounting standards that recently took effect.
The pending retirement of an existing bond was first brought up during the presentation of the Monthly Financial Report by Clifton Addison, Director of Finance.
The bond in question was originally sold by LANGD in 2006. The $5 Million bond carried an interest rate of 5.33% and was amortized over 20 years with a 10-year balloon payment. The $3.2 Million outstanding balance of the bond is due on June 26, 2016.
While LANGD has sufficient cash on hand, some of the cash cannot be used due to restrictions on the use of customer deposits. Also, LANGD has several capital projects scheduled for later in the year.
Addison has been in discussions with Region’s Bank who has offered to establish a Line of Credit for LANGD. The current interest rate on the line of credit would be 2.94%.
The Board approved the establishment of the proposed Line of Credit, but deferred approval of the Bond payoff pending the preparation of the required resolution. A special meeting may be called to formally approve the bond payoff.
Another item on the agenda allowed Mayor Kilsheimer to add value due to his knowledge of the Central Florida public relations industry.
LANGD has previously discussed the need to hire a public relations firm and Samuel Davis, General Manager and CEO, presented information from three different firms. Mayor Kilsheimer suggested several other PR firms that the Board might consider.
The Board decided to defer a decision until the June meeting in order to give the staff time to contact more firms.