Agenda 01-18-22; 8-h - Approval of Financing Arrangements for New Hope Volunteer Fire Department to Purchase Fire Truck

Browse Search

2 • Obtain approval of the "applicable elected representatives" — In accordance with Section 147, the Board of County Commissioners must approve the Department's plan to enter into the debt arrangement. This approval does not create liability on the part of Orange County nor does it make the County responsible for the repayment of any debt assumed by the fire department. The approval provides a mechanism for the Board of Commissioners to acknowledge that, through this financing arrangement, the Fire Department is pledging use of the Fire Tax District's tax dollars to repay the loan. In order to comply with this IRS requirement, the Chair of the Board of Commissioners must sign the Fire Service Agreement and Certificate of Approval for the district (Attachment 3 and 4). FINANCIAL IMPACT: NHFD plans to finance a portion of the cost of the truck in the amount of $400,000. The Department Board of Directors have agreed to an interest free, 10-year loan with the Piedmont Electric Membership Corporation. The department does not anticipate the purchase will cause an increase in its current district tax rate. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse, and domestic violence. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: 1. Approve New Hope Volunteer Fire Department entering into a financing arrangement to purchase a replacement fire truck; and 2. Authorize the Board of County Commissioners' Chair to sign the appropriate documents related to the financing arrangement.