Laserfiche WebLink
Indian River County <br />Inter -Office Memorandum <br />Office of Management and Budget <br />CONSENT AGENDA <br />TO: Members of the Board <br />of County Commissioner <br />FROM: Jason E. Brown <br />Director, Office of Manage Yom: Budget <br />DATE: December 7, 2015 <br />SUBJECT: Interest Rate Change on All County Financing <br />(Petition Paving, Utility Assessment Projects, <br />Utility Impact Fees, etc.) <br />DESCRIPTIONS AND CONDITIONS <br />In January of each year the Board of Commissioners adjusts the fixed interest rates charged by the <br />County for financing utility assessments, utility impact fees, petition paving assessments and any other <br />financing. County policy has been to set this rate equivalent to the prime interest rate as published in the <br />Wall Street Journal and other financial news outlets, with the exception that the rate will not be set lower <br />than 5.75% (5-3/4%) for County financing The Board of Commissioners approved this minimum rate on <br />February 5, 2002, and it is equivalent to the interest rate on County utility revenue bonds. This minimum <br />rate was established to prevent the County from lending at lower rates than our own borrowing costs. It <br />should be noted that after the early payoff of the Series 2005 Water & Sewer Revenue Bonds earlier this <br />year, the maximum interest rate on Utility Bonds is now 5.00%. Therefore, staff recommends reducing <br />the minimum limit to 5 00% <br />The prime interest rate listed on Bloomberg on Monday, December 7, 2015, was 3.25%. Staff <br />recommends setting the interest rate charged by the County at 5.00%, the new recommended minimum <br />rate. The only exception to this interest rate would be for projects directly affiliated with a bond issue for <br />which the bond covenants dictate a different interest rate. <br />RECOMMENDATION <br />Staff recommends that the Board of County Commissioners approve the fixed interest rate of 5.00%. <br />Staff further recommends that this rate remain in effect for calendar year 2016 for all County financing <br />with the exception of projects directly affiliated with a bond issue for which the bond covenants dictate a <br />different interest rate. <br />ATTACHMENT <br />County Financing Interest Rate History <br />APPROVED AGENDA ITEM: <br />BY:Ce A. <br />Jose h A. Baird <br />County Administrator <br />FOR: December 15, 2015 <br />Indian River County <br />Ap•roved <br />Date <br />Administrator <br />is <br />County Attorney <br />��� <br />f� <br />1 tor <br />Budget <br />i. <br />( <br />Department <br />r <br />Risk Management <br />38 <br />