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-7 <br />BOOK 91 PAGE 106,5 <br />Administrator Chandler distributed an Analysis of Impact Fees <br />Financed, and noted that in the last year or two all projects were <br />financed at 8 percent. <br />OMB Director Joe Baird explained that the interest rate on the <br />various projects was set at the time of the assessments and was <br />directly tied to the bond rate and included in the bond covenant. <br />He pointed out that these are 5- and 10 -year agreements at a fixed <br />rate, so the interest rate does not go up or down. <br />Commissioner Bird understood that this is an individual <br />request, but we cannot give relief without studying the effect on <br />the entire system. He asked whether we would be in a better <br />position in the future if we set an adjustable rate on these <br />projects. <br />Director Baird explained that the County is not set up to <br />handle adjustable rate loans. It becomes labor intensive and more <br />costly and we are not set up to be in the banking business. He <br />also emphasized that in inflationary times we would have the <br />problem of raising interest rates. <br />Commissioner Macht noted that the County's maximum term is 10 <br />years, which is a short enough period that the rate does not cause <br />an extreme hardship. If there is a substantial decline in interest <br />rates, a person could go to a bank to obtain a loan at a more <br />favorable rate. <br />Commissioner Adams agreed that it would be better for somebody <br />to get a loan from a bank or a private source. <br />ON MOTION by Commissioner Adams, SECONDED by <br />Commissioner Macht, the Board unanimously denied the <br />request of Dixie A. Davis to refinance her impact <br />fee contract. <br />NEW HORIZONS REQUEST FOR LETTER OF SUPPORT <br />The Board reviewed the letter from Richard L. Mills of New <br />Horizon dated March 16, 1994: <br />60 <br />