TITLE
Title
APPROVE INSTALLMENT FINANCING RESOLUTION AND CONTRACT
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SPONSOR
Sponsor
Donald Warn
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BACKGROUND
Background
The Board of Commissioners adopted the FY 2024 budget on June 15, 2023, which included the purchase of county vehicles.
Vehicle purchases typically have a long lead time and can take months from the time of the order before we take delivery. For the vehicles being financed, we brought a reimbursement resolution to the Board of Commissioners that was approved on December 21, 2023, declaring the intention to reimburse the County from proceeds of tax-exempt financing for the capital expenditures related to the purchase of county vehicles.
For the FY24 Vehicle Project Ordinances that were adopted January 18, 2024, the County has ordered all the vehicles that were approved, and we have received all the vehicles except for the Emergency Services ambulance boxes for the new chassis which are still encumbered and will be reimbursed when they are received.
The County distributed a Request for Proposal on April 9, 2025 to over sixty different financial institutions and received nine (9) qualified responses. The interest rates offered for the financing ranged from 3.4009% to 5.39%. An evaluation of the responses was conducted based on financing terms, credit quality of the institution, and prepayment options, and Banc of America was selected for vehicle financing.
The County is seeking financing through Banc of America, not to exceed $2,746,000 at a rate of 3.4009% per annum, with a repayment term of 48 months, for vehicles from the following departments: Fleet Operations (Inspections, DSS, Public, Fleet), Emergency Services, and Law Enforcement. The purchase will replace fifty-seven (57) vehicles, fifty (50) of which are Law Enforcement vehicles, and two (2) are ambulances for Emergency Services.
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BUDGET IMPACT
Budget Impact
INSTALLMENT FINANCING INCLUDED IN FY 2024 ADOPTED BUDGET
NO ADDITIONAL COUNTY FUNDS REQUIRED
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