AGENDA REQUEST
| TO: | Board of Directors
North Sumter County Utility Dependent District | | FROM: | Kenny Blocker, Deputy District Manager | | DATE: | 7/22/2021 | | SUBJECT: | SWCA Valuation Report |
ISSUE:
Sumter Water Conservation Authority Valuation
ANALYSIS/INFORMATION:On June 17, 2021 the Board approved the Purchase and Sale Agreement (PSA) for Sumter Water Conservation Authority LLC. (SWCA). As part of the PSA agenda, the Board also approved PFM to perform the valuation report for the irrigation utility.
PFM will present the valuation based on the income approach as outlined in the PSA that was approved on June 17, 2021. As described in the PSA, the seller and purchaser would have a valuation performed on the irrigation utility. Once complete the net value as describe in the PSA would be compared to each other to determine the % difference. PFM determined the net value for SWCA is $106,850,000 compared to the Seller’s net valuation of $116,750,000 or a 9.27% difference. As per the contract the net value would be an average of the two as it fell between 5-10% difference, thus the average of the two valuations would be $111,800,000.
STAFF RECOMMENDATION:
MOTION: | | | |