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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 Commissioners <br />FROM: Jason E. Brown <br />Director, Office of Managemen & Buiget <br />DATE: December 8, 2014 <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 <br />the County for financing utility assessments, utility impact fees, petition paving assessments and <br />any other financing. County policy has been to set this rate equivalent to the prime interest rate <br />as published in the Wall Street Journal and other financial news outlets, with the exception that <br />the rate will not be set lower than 5.75% (53/%) for County financing. The Board of <br />Commissioners approved this minimum rate on February 5, 2002, and it is equivalent to the <br />interest rate on County utility revenue bonds. This minimum rate was established to prevent the <br />County from lending at lower rates than our own borrowing costs. <br />The prime interest rate listed on Bloomberg on Monday, December 8, 2014, was 3.25%. Staff <br />recommends setting the interest rate charged by the County at 5.75%, the minimum rate set in <br />2002. The only exception to this interest rate would be for projects directly affiliated with a bond <br />issue for 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 <br />5.75%. Staff further recommends that this rate remain in effect for calendar year 2015 for all <br />County financing with the exception of projects directly affiliated with a bond issue for which the <br />bond covenants dictate a different interest rate. <br />ATTACHMENT <br />County Financing Interest Rate History <br />APPROVED AGENDA ITEM: <br />BY:`i2' : E I�" C-,t,/�",,� <br />Jose • • . Baird <br />County Administrator <br />FOR: December 16, 2014 <br />Indian River County <br />• ... •ved <br />Date <br />Administrator <br />P.'! <br />J;,qit 1 pi <br />County Attorney <br />01.1 <br />2 1`'\ <br />Budget <br />- <br />1#17; g �' <br />Department <br />Risk Mana • ement <br />58 <br />