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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 4, 2023 <br /> Action Agenda <br /> Item No. 8-1 <br /> SUBJECT: Approval of Financing Arrangements for Efland Volunteer Fire Department for <br /> Renovation of Fire Station #1 <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. March 14, 2023 Public Gary Donaldson, 919-245-2453 <br /> Hearing Notice <br /> Attachment 2. Notes from March 14, 2023 <br /> Public Hearing <br /> Attachment 3. Fire Service Agreement <br /> Attachment 4. Certificate of Approval <br /> PURPOSE: To approve the Efland Volunteer Fire Department (EVFD) entering into a financing <br /> arrangement to renovate Efland Fire Station #1, and authorize the Board of Commissioners' Chair <br /> to sign the appropriate documents related to the financing arrangements. <br /> BACKGROUND: The Efland Volunteer Fire Department intends to renovate Fire Station #1 <br /> which includes adding office space and improved living conditions including bedrooms for night <br /> first responders. The requisite supporting attachments are attached. The loan amount is <br /> $2,299,798 and will be borrowed from Roxboro Savings Bank. The renovations are projected to <br /> be completed in 2024. <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 purchase. Volunteer fire <br /> departments are not mandated to obtain Board of County Commissioner approval when <br /> undertaking acquisitions, improvements or 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 March 14, 2023, EVFD held a public hearing regarding <br /> the renovation project and financing. EVFD advertised the hearing in the News of Orange <br /> newspaper. Per the hearing notes at Attachment 2, no individuals signed up for comment <br /> or made comment when the floor was opened during the hearing. <br /> • Obtain approval of the "applicable elected representatives" — In accordance with <br /> Section 147, the Board of County Commissioners must approve the Department's plan to <br />