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2 <br /> Additional Debt Financing Needed in FY 2012-13 <br /> Project Amount <br /> Southern Human Services Center(10027) $ 280,000 <br /> Information Technology(30007) $ 500,000 <br /> $ 780,000 <br /> Vehicle Replacement Fund <br /> Project Amount <br /> Vehicle Replacements $ 640,503 <br /> $ 640,503 <br /> Grand Total $ 10,000,000 <br /> The preliminary schedule for the financing is attached (Attachment 2). Staff will be receiving <br /> bids from financial institutions to secure the financing and anticipates receiving $10 million in <br /> financing for twenty (20) years at an interest rate of 2.30 percent, which will result in an average <br /> annual debt service cost of$742,000. <br /> FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be <br /> a financial impact in proceeding with the financing for projects. A preliminary estimate of <br /> maximum debt service applicable to the school and County projects financing would require <br /> $683,000 in fiscal year 2013-14 with the highest debt service payment of $743,000 falling in <br /> fiscal years 2015-2018. The tax rate equivalent for the highest debt service payment is <br /> approximately .4054 cents. <br /> RECOMMENDATION(S): The Manager recommends the Board receive the preliminary <br /> information, provide feedback to staff, and approve a resolution authorizing the scheduling of a <br /> public hearing for the installment financing for capital investment projects and equipment as <br /> noted above and in the attachments and previously authorized by the Board . <br />