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7. F. INTEREST RATE CHANGE ONALL COUNTY FINANCING (PETITION PAVING, UTILITYASSESSMENTPROJECTS, UTILITY IMPACTFEES ETC. ) — OLD RATE 8e5 % — NEW RA TE 8 S % FOR CALENDAR YEAR 2001 The Board reviewed a Memorandum of December 20 , 2000 : TO : Members of the Board of County Commissioners DATE : December 20, 2000 SUBJECT : INTEREST RATE CHANGE ON ALL COUNTY FINANCING (PETITION PAVING, UTILITY ASSESSMENT PROJECTS, UTILITY IMPACT FEE, ETC.) THROUGH : Joseph A. Baird Assistant County Administrator FROM : Jason E . Brown Budget Manager DESCRIPTIONS AND CONDITIONS Fixed interest rates charged by the County for financing utility assessments, utility impact fees , petition paving assessments and any other financing are adjusted on an annual basis in January of each year. For the 2000 calendar year, the assessment/financing fixed interest rate was set at the prime rate, which was 8 V2 % at the time . The prime interest rate in the Wall Street Journal on Wednesday, December 20, 2000, was 9 V2 %, which would mean an increase in the rate from 2000 to 2001 of 1 %. The only exception to this interest rate would be if the project was directly affiliated with a bond issue and the requirements dictated a different interest rate . RECOMMENDATION Staff recommends that the Board of County Commissioners approve the fixed interest rate of 9 %% or 9 . 5 % for calendar year 2001 . Assistant County Administrator Joe Baird noted that last year the interest rate was 8 . 5 % . The policy has been to set a new rate for each year based on the prime . However, staff is a little concerned about raising the rate to 9 . 5 % for the 2001 fiscal year as there are several large assessments in process for this year . Staff had not anticipated the interest rate climbing this high and , since these monies are not pledged specifically to a bond issue , the Board may choose to leave the interest rate at 8 . 5 % . JANUARY 2 , 2001 - 25 -