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

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2 o Conduct a public hearing - On September 6, 2007, the department held a public hearing regarding the purchase. The Department advertised the hearing in the News of Orange (Attachment 2 of this abstract). Per Attachment 3 of this abstract, no residents were present at the hearing and the Department did not receive any written comments from residents of the district. • Obtain approval of the "applicable elected representatives" - In accordance with Section 147, the Board of County Commissioners must approve the District's plan to enter into the debt arrangement. This approval does not create liability on the part of Orange County nor does it make the County responsible for the repayment of any debt assumed by the fire district. The approval provides a mechanism for the Commissioners to acknowledge that, through this financing arrangement, Orange Rural Fire Department No. 1, Inc. is pledging use of the District's tax dollars to repay the loan. In order to comply with this IRS requirement, the Chair of the Commissioners must sign the Fire Service Agreement (Attachment 4) and Certificate of Approval (Attachment 5). FINANCIAL IMPACT: The department's major revenues consist of County fire district taxes and fees for service from the Town of Hillsborough. According to the district's June 30, 2006 financial statements (the most recent financial statement available at this time), the district received about $1,042,661 during fiscal year 2006-05 from those two sources. The department had about $590,382 in its bank accounts as of June 30, 2006. Funds remaining in the Department's bank accounts would serve as a reserve that would potentially be used to cover unanticipated major expenses such as repairs or replacements of other older equipment. In addition to requesting that County Commissioners approve the financing arrangement for the replacement of the fire rescue truck, the District also requests that Commissioners approve an appropriation of $40,000 from the its County-held fund balance. In an effort to reduce the overall amount of outstanding debt the department has, the District wishes to pay-off an existing $80,000 loan on a tanker truck. In order to retire that debt, the District plans to use $40,000 from the district's County-held fund balance plus $40,000 from its built-up capital reserves to pay off the loan. Should the Board approve the District's request to appropriate $40,000, approximately $12,000 would remain in the department's County-held .unappropriated fund balance. RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners: 1. Approve a request from Orange Rural. Fire Department No. 1, Inc. to enter into a financing arrangement with CommunityOne Bank to purchase a fire. rescue truck; 2. Authorize the Board of Commissioner Chair to sign the appropriate documents related to the financing arrangement; and 3. Appropriate $40,000 from the District's County-held fund balance for the purposes outlined in the Financial Impact section of this agenda abstract.