Agenda - 04-18-2006-9b - Laserfiche WebLink

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a purchase of the compactor at a total cost of $335,900 at the September 7, 2005 regular meeting,.) The amount of the installment-financing contract totals $1,551,125 ($335,900 for Solid Waste and $1,215,225 for the items on Attachment 1), As outlined in the Background section above, staff proposes to enter into two private placement arrangements with SunTrust in order to fund the purchases. The Finance Director requested proposals from five lenders, and SunTrrast had the most favorable interest rates. • Thirty-Six Month Arrangement -Based on quotes received from SunTrust, projected annual debt service payments (over a 36 month period) related to the total arrangement would be approximately $320,000. The interest rate quoted by SunTrust for this arrangement is 3.70 percent annually. The projected annual debt service payments were included in the most recent (.January 20, 2006) debt capacity calculations presented to the Board.. • Fifty-Nine Month Arrangement -Based on quotes received from SunTrust, projected annual debt service payments (over a 59 month period) related to this arrangement would be approximately $195,000. The interest rate quoted by SunTrust for this arrangement is 3..74 percent annually, The projected annual debt service payments were included in the most recent debt capacity calculations presented to the Board, On May 4, 2006, staff will bring the resolution authorizing the installment financing arrangement along with the Equipment and Vehicles Capital Project Ordinance to the Board for final approval. Projected annual debt service requirements for both financing arrangements total $420,000 and were included in the most recent debt capacity calculations presented to the Board on .January 20, 2006., It is important to note that the Solid Waste portion of the payment would be charged directly to the Solid Waste Enterprise Fund with the remainder charged to the General Fund. In accordance with the Board's adopted County Capital Funding Policy, the County's annual General Fund debt service appropriations would include the debt outlined in the above section. Staff recommends that the General Fund debt service payments be covered through the annual available pay-as-you-go funding for capital projects and not through dedicated property tax, It is important to note that should the Board decide to postpone the recommended action until a later date, current year model Sheriffs vehicles will not be available for purchase. RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners: (1) Approve the equipment and vehicle purchases (outlined on Attachment 1 of this abstract); (2) Authorize staff to bring to the May 4, 2006 Commissioners meeting the Equipment and Vehicles Capital Project Ordinance and executed documents required to accomplish the financing with SunTrust Bank