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r <br />Nov 241992 <br />BOOK 88 FAuE ill 1 <br />J. Chancring the Interest Rate on Petition Paving and Utility <br />Assessment Projects to 8 PERCENT <br />The Board reviewed memo from OMB Director Joe Baird dated <br />November 18, 1992: <br />TO: Members of the Board <br />of County Commissioners <br />DATE: November 18, 1992 <br />SUBJECT: CHANGING THE INTEREST RATE ON PETITION PAVING AND <br />UTILITY ASSESSMENT PROJECTS - CONSENT AGENDA <br />FROM: Joseph A. Bair <br />OMB Director <br />DESCRIPTION AND CONDITIONS <br />Assessment interest rates are scheduled to be set on an annual basis in January of each <br />year. The Utility Department has scheduled public hearings in early December on large <br />Utility Assessment projects that if approved by the Board of County Commissioners would <br />pay 9 3/4% interest. Prime interest rate in the Wall Street Journal today is 6% which <br />would mean we would charge an assessment interest rate of 8% if the rates were charged <br />today. By changing the rate effective immediately rather than in January we would reduce <br />the interest cost from 9 3/4 % to 8% for those individuals involved in assessment projects. <br />RECOMMENDATION <br />Staff recommends that the Board of County Commissioners approve the change in the <br />interest rate to 8% effective immediately. <br />At the Chairman's request, Administrator Chandler recounted <br />discussions about a year ago when the Board directed staff to <br />analyze and adjust the County's interest rate for petition paving <br />and utility assessment projects on an annual basis. The <br />appropriate adjustment in the interest rate ordinarily would be <br />made in January. However, because of the Phase II water expansion <br />assessment, which will be presented to the Board in December, as <br />well as the petition paving item on today's agenda, staff is <br />recommending that we change the interest rate sooner for this <br />fiscal year. Our policy has been to charge 2 points above the <br />prime rate. The prime rate currently is 6 percent; therefore <br />staff's recommendation is an interest rate of 8 percent. The prior <br />rate was 9-3/4 percent. <br />ON MOTION by Commissioner Adams, SECONDED by <br />Commissioner Bird, the Board unanimously approved an <br />interest rate of 8 percent to be charged on petition <br />paving and utility assessment projects, effective <br />immediately, as recommended by staff. <br />12 <br />77 <br />