Agenda - 06-18-2013 - 5r - Laserfiche WebLink

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2 Additional Debt Financing Needed in FY 2012-13 Project Amount Southern Human Services Center(10027) $ 280,000 Information Technology(30007) $ 500,000 $ 780,000 Vehicle Replacement Fund Project Amount Vehicle Replacements $ 640,503 $ 640,503 Grand Total $ 10,000,000 Additionally, on May 7, 2013, the Board of County Commissioners held a public hearing to receive public comments on the financing of the various projects. The County requested and received bids for the installment financing from the following financial institutions- 1. SunTrust Institutional and Government Inc. 2. Bank of America Public Capital Corporation 3. BB&T 4. Capital One SunTrust Institutional and Government, Inc. (SunTrust) was selected as the financially responsive and responsible bidder. The financing agreement proposed by SunTrust and accepted will be subdivided into two installment financing agreements: one for the financing of the capital investment projects, and one for the financing of the equipment. The financing terms of the two installment financing agreements will be follows: 1. Installment Financing Agreement 1 — Capital Projects - $7.45 million, Interest Rate — 2.09%, Average debt service over 15 years totals $581,605. 2. Installment Financing Agreement 2 — Equipment (Vehicles) - $2.63 million, Interest Rate — 1.0994%, Average debt service over 5 years totals $175,545. Total annual debt service will average $567,862 over the term of the installment financing agreements. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact in proceeding with the financing. The maximum debt service applicable to the capital projects financing would be $610,515, and $543,278 for the equipment financing, with both occurring in fiscal year 2013-14. The tax rate equivalent for the highest debt service payment is approximately .7181 cents.