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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: January 18, 2022 <br /> Action Agenda <br /> Item No. 8-h <br /> SUBJECT: Approval of Financing Arrangements for New Hope Volunteer Fire Department <br /> to Purchase Fire Truck <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. November 10, 2021 Public Gary Donaldson, 919-245-2453 <br /> Hearing Notice Rebecca Crawford, 919-245-2152 <br /> Attachment 2. Board of Directors Letter <br /> and November 22, 2021 <br /> Public Hearing Notes <br /> Attachment 3. Fire Service Agreement <br /> Attachment 4. Certificate of Approval <br /> PURPOSE: To approve New Hope Volunteer Fire Department (NHFD) entering into a financing <br /> arrangement to purchase a fire engine truck, and authorize the Board of Commissioners' Chair to <br /> sign the appropriate documents related to the financing arrangements. <br /> BACKGROUND: NHFD intends to purchase a fire engine to replace an aging engine originally <br /> purchased in 1990. The department went through a competitive bid process and awarded the bid <br /> to Atlantic Coast Fire Trucks. The purchase price of the truck is $621,715. The department will <br /> make a down payment of$221,715 (not from tax supported dollars) and will borrow the remaining <br /> $400,000 in an interest free loan from Piedmont Electric Membership Corporation. The <br /> department's unassigned fund balance of$37,682 will not be impacted by this request. <br /> Volunteer fire departments are required to obtain Board of County Commissioners approval of <br /> such purchases only when they use tax-exempt debt financing to pay for a purchase. Volunteer <br /> fire departments are not mandated to obtain Board of County Commissioners approval when <br /> making 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 the required steps to comply with Section 147. <br /> • Conduct a public hearing — On November 22, 2021, NHFD held a public hearing <br /> regarding the purchase. NHFD advertised the hearing in The News of Orange (Attachment <br /> 1). Per the hearing notes in the Board of Directors Letter (Attachment 2), no individuals <br /> signed up for comment or made comment when the floor was open during the hearing. <br />