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' owN: ammy _ <br /> BOAM OF COK-E=ON= +- . <br /> A=CN AGWA ABSTM= xt :rro. l 9 <br /> MEM= HATE January 4, 1983 - <br /> Subject: Financing of Front End: Loading Refuse Truck and Computer Equipment - <br /> t Fcn as i n a Finance Public Hearing: ayes reo71 <br /> Att3& t(S) k7.0[1 Contact: <br /> Yes: Mark H. Rees, ext.. 497~ <br /> Phone Number: Wallace Harding, ext_ 496 <br /> Pte: To consider two alternatives for financing Front. End Loading Refuse Truck and <br /> Computer Equipment. <br /> Alternative 1-: Award lease purchase agreement to Municipal Leasing Corooratforr <br /> as being the lowest responsible bidder (see attached bid. summa r, <br /> 13'_11A interest rate. <br /> Alternative 2.: Purchase equipment outright by using: $45,000 of the water and <br /> - sewer extension appropriation in the CIP fund. This will Teave <br /> $10,000 in that project for this year and is all' that is expectr, <br /> to be spent; $10,.000 from old courthouse restoration project <br /> which will leave $55,000 in this project and will be enough to <br /> match grants of $29,000; $32,000 from the Commissioners contin- <br /> gency. account which will leave $40,900 for the remainder of the <br /> year} $52,000 frorrr current years Local Option Sales Tax which ' <br /> is. comina irr approximately 2h% above budget. <br /> NEED: Previous: Board. action authorized purchase'of this equipment subject to financing. <br /> arrangement. <br /> TMAGZ'': At the lease purchase rate of interest of 13.1% and the current investment rate <br /> of 9% the County would benefit materially by buyinq• the: equipment outright.. <br /> Interest expense (13,.10) 28,074 <br /> Interest earnings (9%) (18',793) <br /> 9,281 <br /> Assuming a 5% annual inflation rate the $9,281 loss would be $8,375. <br /> RECOMMENOATION(S) :: <br /> purchase equipment outright (see proposed budqet amendment.) <br />