Agenda - 09-19-2007-4f - Laserfiche WebLink

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 19, 2007 Action Age~a Item No. SUBJECT: Approval of Financing Arrangement and Fund Balance Appropriation for Orange Rural Fire Department No. 1, Inc. to Purchase a Replacement Fire Rescue Truck DEPARTMENT: Budget PUBLIC HEARING: (Y/N) No Attachment 1. Letter from Orange Rural Fire Department No. 1, Inc. Board of Directors President Attachment 2. September 6, 2007 Public Hearing Notice Attachment 3.. Notes from 9/06/07 Public Meeting Attachment 4. Fire Service Agreement Attachment 5. Certificate of Approval PURPOSE: To approve a request from Orange Rural Fire Department No. 1, Inc. to enter into a financing arrangement to purchase a fire rescue truck, authorize the Board of Commissioner Chair #o sign the appropriate documents related to the financing arrangement, .and appropriate $40,000 from the District's. County-held fund balance. BACKGROUND: In the attached letter addressed to the Orange County Budget Office, John Forrest, President of the Orange Rural Fire Department No. 1, Inc. indicated the department's intent to purchase a replacement rescue truck (Attachment 1 of this abstract). The department will purchase a 1992 Simon-Duplex/Saulsbury Rescue Truck to replace its current 1983 truck. According to Attachment 1, the purchase price of the truck totals $200,000 (a comparable new truck costs approximately $625,000). The Department's Board of Directors agreed to borrow up to $180,000 from CommunityOne Bank and to pay the remaining $20,000 from the Department's capital reserve. The interest rate for the 5-year note is 4.220 percent with monthly payments of $3,333. The total repayment, including principal and interest, equals $199,980. It is important to note that these figures may vary slightly depending upon the actual loan closing date. ATTACHMENT (S): INFORMATION CONTACT: Donna Coffey 245-2151 Section 147 of the Internal Revenue Code of 1986 outlines specific steps that must occur when a tax supported fire department enters into a financing arrangement.