Agenda - 11-20-2012 - 7c - Laserfiche WebLink

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ORD-2012-058 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 20, 2012 Action Agenda Item No. 7-c SUBJECT: Establishment of a Community Loan Fund for the Water and Sewer Connections for Efland and Rogers Roads Residents, and Approval of Budget Amendment#4-D DEPARTMENT: Financial and Administrative PUBLIC HEARING: (YIN) No Services ATTACHMENT(S): INFORMATION CONTACT: Frank Clifton, 919-245-2300 Sample Loan Agreement Clarence Grier, 919-245-2453 John Roberts, 919-245-2318 PURPOSE: To approve the establishment of a Community Loan Fund for water and sewer connections for residents of the Efland and Rogers Road areas of Orange County, and approve Budget Amendment#4-D. BACKGROUND: In previous meetings, some members of the BOCC have requested staff investigate the establishment of a small loan fund to assist residents of the County in connecting to water and sewer lines within certain geographical areas of the County. Currently the County is investing in water and sewer infrastructure in the Efland area of the County to foster economic development within this area of the County and to address some long-standing agreements with residents of the area. Additionally, as part of the closing of the landfill and part of the related actions taken by the BOCC to mitigate long-standing problems experienced by residents of the Rogers Road area involving the landfill, the BOCC established a mitigation fund to assist residents of the Rogers Road area to hookup to water and sewer. Some residents in both areas have approached the County in regards to wanting to connect to the water and sewer services provided, but do not have the financial resources to do so. Therefore, the establishment of a community loan fund is proposed for such purposes. It is recommended that the Community Loan Fund be established with a $100,000 appropriation from the General Fund available fund balance. All loans would range from $3,500 to a max of $10,000, and carry a low interest rate of 1 to 2 percent over a maximum period of 10 years. A .25% administrative fee would be added on each loan to cover the administration of the loan.