The City has the legal authority to obtain a line of credit pursuant to the Constitution of the State of Florida, Chapter 166, Part II, Florida Statutes, as amended, Chapter 159, Part VII, Florida Statutes, as amended, and the Charter of the City (collectively, the “Act”), to borrow money to finance capital projects.
This line of credit would be secured by a covenant to budget and appropriate non-ad valorem revenues. The current line of credit has no outstanding balance and expires in July 2018.
The City utilizes the line of credit to meet its financial commitment needs and be in compliance with state law while spending its existing bonds proceeds or have the capacity to award new projects in advance of longer term financing.