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z <br />• Obtain approval of the "applicable elected representatives" - In accordance with <br />Section 147, the Board of County Commissioners must approve the District's plan to <br />enter into the debt arrangement, This approval does not create liability on the part of <br />Orange County nor does it make the County responsible far the repayment of any debt <br />assumed by the fire district, The approval provides a mechanism for the Commissioners <br />to acknowledge that, through this financing arrangement, Orange Grove Fire Department <br />is pledging use of the District's tax dollars to repay the loan. In order to comply with this <br />IRS requirement, Mr, Futrelle's letter requests the Chair of the Commissioners sign the <br />Fire Service Agreement (Attachment 3) and Certificate of Approval (Attachment 4), <br />FINANCIAL IMPACT: The department's major revenues consist of County fire district taxes. <br />According to .June 30, 2003 financial statements completed by the Department, the fire district <br />received about $180,069 from fire district taxes, The department had about $77,098 in its bank <br />accounts as of .June 30, 2003, As indicated earlier, the department plans to spend $40,704 out <br />of its bank accounts to make the down payment on the truck leaving about $36,394 in its bank <br />accounts, Funds remaining in the Department's bank accounts would serve as a reserve that <br />would potentially be used to cover unanticipated major expenses such as repairs or <br />replacements of other older equipment, <br />The departments' current year County approved budget totals $186,998, The department's <br />requested budget for fiscal year 2004-05 includes funds for debt service associated with this <br />purchase, The Department has not requested a tax rate increase to cover the payments, <br />RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners <br />approve the Orange Grove Fire Department's purchase of a replacement fire truck and <br />authorize the Board of Commissioner Chair to sign the appropriate documents related to the <br />financing arrangement, <br />