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Latest News
Posted: 11/24/08
Dear Florida Local Government Finance Program Participant:
There have been several recent and positive developments with the Program. In the last email update in early October, the Program had begun to draw on the Wachovia facility to provide liquidity. The prime rate charged at that time was 4.5% and was subsequently lowered to 4.0% in response the fed funds rate reduction on October 29th.
More….
Beginning November 4th, the Program has again been able to access the commercial paper market. At this point in time, all bank bonds previously placed back to Wachovia have been reimbursed with new commercial paper issues. Actual rates for the month of October were 3.39% for Series A and 2.39% for Series B. November’s actual rates will be closer to 4% for both Series and hopefully trend lower in the following months.
The Florida Local Government Finance Commission met on Friday, November 21st to be briefed on progress regarding the credit enhancement provider search. The financial advisory firm, Public Resources Advisory Group, has solicited interest from several providers; however given the ever-changing landscape, discussions will now be tabled until the first of the year in order to secure the most favorable terms. The Wells Fargo-Wachovia merger is still projected to close sometime this quarter, though a more specific date has not been disclosed.
FAC has continued to work with both state and local entities to advocate for Florida’s local governments and the challenges they bear in the face of this international credit crisis. Early last week, Chris Holley, FAC’s Executive Director, sent a letter to Florida’s delegation urging them to consider municipalities while shaping a second stimulus plan. Specifically, the letter urged Congress to include municipal commercial paper in the Commercial Paper Funding Facility (CPFF) and included several other measures. That letter can be found online at www.floridalocal.org.
As always, if you have any questions, concerns, or comments, please feel free to contact me at any time. Have a wonderful Thanksgiving holiday.
Regards,
Elizabeth Newberry
Program Overview
The Florida Local Government Finance Program is a flexible, low-interest, short- to medium-term loan program geared toward helping local governments meet their many infrastructure and capital needs. Funding acquired through the program has been used for landfills, water and sewer facilities, courthouses, spring training complexes, library construction, beach renourishment, and more.
Rates and Loan Amounts
Flexibility and ease of use are the hallmarks of this successful program. Loans are for five years or less and most initial loans are generally $1million or more. Prepayments can be made at any time, with sufficient notice, with no penalty. Since its inception in 1991, the Program has loaned more than $2.0 billion to Florida local governments.
For the most up-to-date Program information, please click the following links:
Governance and Administration
Administered by the FAC, the program is governed by the Florida Local Government Finance Commission, composed of officials from participating counties. The FAC manages the program portfolio, making borrowing through the program simple.
Commercial Paper v. the Bond Buyer Revenue Bond Index
