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CONSENT AGENDA <br />Indian River County <br />Inter -Office Memorandum <br />Office of Management and Budget <br />TO: Members of the Board <br />of County Commissioners <br />FROM: Jason E. Brown <br />Director, Office of Managemen & Bu•get <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% (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 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: ran , 42 c25214 <br />Jose Baird <br />County Administrator <br />FOR: .December 16, 2014 <br />Indian River County <br />e o. eved <br />Date <br />Administrator <br />'! <br />J l f <br />f)_,`� <br />County Attorney <br />11,1�� <br />./.11 <br />Budget <br />J <br />1211; 1 <br />Department <br />Risk Management <br />58 <br />