Agenda - 12-03-2001-8k - Laserfiche WebLink

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z • Contluet a public hearing- On October 24, 2001, the department held a public hearing regaMing the purchase. The Department advertised the hearing In the News of Orange County (Atachment 2). No residents were preaent at the hearing. Following the public hearing, the Board of pirectorc voted to use funds totaling $81,133 fmm its savings account to make a down payment on IDs truck and to finance the remaining funds ($81,133) with First Bankers Corporation • Obtain approval of the "applicable elected representatives" - In eccoNance with Section 147, the Board of County Commissioners must approve the District's plan to enter into the debt arrangement. This approval does not crealeliability on the part of Orange County nor does it make [he County responsible for [he repayment of any debt assumed by the fre district The approval provides a mechanism for the Commissioners to acknowledge that, through this fnancing arrengement, Orange Rural Fire Department is pledging use of the OistricPS tax dollars to repay the loan. In oNer to comply with this IR$ requirement, Mc Callemyn's letter requests the Chair ctthe Commissionsrs sign the Fire Service Agreement (Attachment 3j and Certificate of Approval (Attachment 4). FINANCIAL IMPACT: The department's malor revenues consist of County fre district taxes and fees for services fmm the Town of Hillsborough. AccoMinq to June 30, 2001 financial statemeMS completed by the Department, the fire district received about $298,000 from those Iwe aeumes. The department had about $224,600 in ita bank accounts as of June 30,2001. As indicated eatlieq the department plena to spend $81,133 out of Rs bank accounts to make the down payment on the track leaving about $140,000 in Rs bank acmuMS. Funds remaining in the Department's bank accounts would serve as a reserve that would potentially be used to cover unantiGpatsd major expenses such as repairs or replacements of other older equipment. The tleparhnent's current year County approved budget totals $310,012, and the Town of Hillsborough's contract with [he department totals $300,000. The departments cunen[ year budget dose not inGUde funds for debt service associated with this purchase since payments will not begin until eAsr delivery of the track. The deparment's 2002-W fiscal year budget will reflect the amount of the new payments. The Deparment dose no[ entlclpata requesting an additional tax rate increase to cover the payments. RECOMMENDATION(S): The Manager recommends that the 608N of County Commisalonere approve the Orange Rural Fire Departments purchase of a replacement fire truck and authorize the BoaN of Commissioner Chair to sign the appropriate documents related to the financing arrangement