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CONSENT AGENDA <br /> Indian River County <br /> Inter-Office Memorandum <br /> Office of Management and Budget U <br /> INS- <br /> TO: Members of the Board <br /> of County Commissioners <br /> FROM: Jason E. Brown <br /> Director, Office of Mange, ent Budget <br /> DATE: December 9, 2013 <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% (5 %%) 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 9, 2013, 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 2014 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: Indian River Count Approved Date <br /> BY , - & , Administrator /3 <br /> Jo ph A. Baird County Attorney <br /> County Administrator Budget <br /> .... <br /> Department <br /> FOR: December 17, 2013 Risk Management <br /> 37 <br />