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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 21, 1989 <br /> SUBJECT: FmHA Loan <br /> DEPARTMENT: Finance PUBLIC HEARING YES: NO: x <br /> ATTACHMENT(S) : INFORMATION CONTACT: Ellen G. Liston <br /> TELEPHONE NUMBER- <br /> Hilisborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To approve the buy-back of the County's Efland Sewer loan <br /> from FmHA with current reserves. <br /> BACKGROUND: The staff presented their recommendation to buy back the <br /> County's FmHA loan at the Board's meeting of March 13. <br /> The staff's recommendation is that the loan be repurchased <br /> with current reserves rather than through a refinancing bond. <br /> FmHA will set the exact terms of the buy-back during the <br /> month of April. We expect the $200,000 loan to be <br /> discounted to approximately $120,000. The exact repurchase <br /> price will depend on market conditions during April, but is <br /> not expected to change significantly from the projected <br /> amount of $120,000. <br /> Approximately $53,200 will be available in the Efland <br /> Sewer construction account after all remaining project <br /> costs have been paid. The project was completed slightly <br /> under the available budget. <br /> The remaining funds (approximately $66,800) will come from <br /> the County Capital Reserve Account. The balance in this <br /> account, after subtracting the $66,800, will be $78,600. <br /> Funds contributed from the County Capital Reserve Fund will <br /> be paid back over the years through the collection of tap <br /> fees. Interest will be charged to the Enterprise Fund at <br /> the interest rate charged on delinquent ad valorem taxes. <br /> RECOMMENDATION(S) : Approve the buy back of the County's FmHA loan with <br /> current reserves. <br />