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Nassau County News

Some Nassau County Assets Frozen

On Nov. 29, 2007, following a $13 billion run on the assets of the Small Business Administration’s (SBA) Local Government Investment Pool (LGIP), the SBA trustees announced a temporary freeze on the remaining $14 billion of assets in the LGIP. These assets belonged to approximately 1,000 different government entities within the state of Florida.

On Dec. 4, 2007, the State Board of Administration (SBA) established a separate Fund B within the LGIP and moved $2 billion in distressed assets (14%) from the LGIP into Fund B, with a goal of liquidating the assets over time. The remaining $12 billion (86%) in the LGIP was renamed Fund A and partially unfrozen.

Investors were given two options with regard to Fund A assets:

1) Withdraw up to 15% of their share of Fund A penalty-free, or
2) Withdraw all dollars in Fund A subject to a 2% redemption fee

At the time these events unfolded, Nassau County had approximately $55.6 million invested with the SBA in the LGIP. After the split, $47.8 million was in Fund A and $7.8 million was in Fund B.

The SBA eventually allowed all dollars in Fund A to be withdrawn without penalty. The entire $47.8 million of Nassau County Fund A investments were liquidated and withdrawn without incident or redemption fees and invested elsewhere.

Today, the underlying assets in Fund B consist mostly of distressed mortgages. Nassau County receives monthly principal and interest payments from these mortgage pools and additional principal payments as assets are liquidated. As of 09/30/09, Nassau County had withdrawn approximately $5.7 million (73%) of the initial $7.8 million of Fund B assets.

The remaining assets in Fund B on 09/30/09 had an estimated market value of $1,134,632 .02 and a book value of $2,066,152.85. The difference of $931,520.83 represents Nassau County's expected loss. In recognition of this potential loss, $503,969.53 was reserved in fiscal year 2007/08 and an additional $51.30 was set aside in fiscal year 2008/09.

While it is impossible to know the exact outcome over time, it is recommended that the Board write off the $931,520.83 already reserved, and bring the book value of Fund B assets in line with the 09/30/09 estimated market value.

Recognizing the recommended write-off now rather that waiting for the final maturities of the remaining assets only raises certainty in sound budget planning going forward.

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Discuss Future Water Supplies Jan. 28

PALATKA, Fla., Jan. 13, 2010 — The St. Johns River and Suwannee River water management districts will hold a joint public meeting on Jan. 28 to encourage public participation in the development of the St. Johns District’s Water Supply Plan (DWSP) 2010 and the Suwannee District’s Upper Santa Fe River Basin Water Supply Plan.

The informational meeting with senior technical staff from both agencies will be held from 6:30–8 p.m. at the Alachua County Health Department Auditorium, 224 S.E. 24th St., Gainesville.

The agenda includes an overview of the water supply planning process, discussion led by each of the water management districts on the water supply assessment in northeast Florida, and opportunity for public comment.

The St. Johns District’s Water Supply Plan 2010 and the Suwannee District’s Upper Santa Fe River Basin Water Supply Plan are designed to meet the requirements of the water supply planning provisions of Chapter 373, Florida Statutes.

Through meetings of the Northeast Florida Water Supply Planning Area Work Group, the planning process concentrates on a 10-county area including the eight St. Johns District counties in northeast Florida, as well as portions of Columbia and Union counties in the Suwannee District.

Alachua, Bradford and Baker counties span both water management districts. The process is being coordinated with the Suwannee District and is an open public process involving local governments, water supply utilities, self suppliers, other governments and other interested parties.

The draft projections of water demand through the year 2030 and analysis of potential environmental impacts identifies areas in the St. Johns District where current and anticipated sources of water and conservation efforts may not be adequate to meet projected needs and sustain the water resources and related natural systems without causing unacceptable impacts, unless strategies are identified to assure that adequate and sustainable water supplies are available.

Without implementing alternative water supply strategies, some impacts also could occur in the neighboring Suwannee District as a result of projected water use increases in both districts.

Visit the St. Johns District's Web site at www.sjrwmd.com/watersupplyplanning to learn more about its water supply planning process.