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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 2, 2021 <br /> Action Agenda <br /> Item No. 8-g <br /> SUBJECT: Approval of Financing Arrangements for White Cross Fire Department to <br /> Purchase Fire Truck and Associated Equipment <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. July 8, 2021 Public Hearing Gary Donaldson, 919-245-2453 <br /> Notice Rebecca Crawford, 919-245-2152 <br /> Attachment 2. Notes from July 8, 2021 <br /> Public Hearing <br /> Attachment 3. Fire Service Agreement <br /> Attachment 4. Certificate of Approval <br /> PURPOSE: To approve White Cross Volunteer Fire Department (WCFD)entering into a financing <br /> arrangement to purchase a replacement fire engine truck and associated equipment and <br /> authorize the Board of Commissioners' Chair to sign the appropriate documents related to the <br /> financing arrangements. <br /> BACKGROUND: WCFD intends to purchase a replacement fire truck and associated loose <br /> equipment. The new fire truck will replace a 24-year-old fire engine. The department went through <br /> a competitive bid process and awarded the bid to 4-Guys, Inc. The purchase price of the truck is <br /> $531,839, and the cost of loose associated equipment will be $30,000 for a total cost of$561,000, <br /> which will be borrowed from the United States Department of Agriculture (USDA). The truck is <br /> projected to be delivered in 2022. <br /> Volunteer fire departments are required to obtain Board of County Commissioner approval of such <br /> purchases only when they use tax-exempt debt financing to pay for purchase. Volunteer fire <br /> departments are not mandated to obtain Board of County Commissioner approval when making <br /> purchases that do not require debt financing. <br /> Section 147(f) of the Internal Revenue Code of 1986 outlines specific steps that must occur when <br /> a tax supported fire department enters into a financing arrangement. The department has <br /> completed these required steps to comply with Section 147: <br /> • Conduct a public hearing — On July 8, 2021, WCFD held a public hearing regarding the <br /> purchase. WCFD advertised the hearing in The Herald-Sun (Attachment 1). Per the <br /> hearing notes on Attachment 2 of this abstract, no individuals signed up for comment or <br /> made comment when the floor was opened during the hearing. <br />