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U INTEREST RATE ON COUNTY FINANCING (PETITION PA VING, UTILITY <br />ASSESSMENT PROJECTS, UTILITIES IMPACT FEES, ETG) . 4.75% . <br />CALENDAR YEAR 2002 <br />The Board reviewed a Memorandum of December 12, 2001: <br />TO: Members of the Board <br />of County Commissioners <br />DATE: December 12, 2001 <br />SUBJECT: Interest Rate Change on All County Financing <br />(Petition Paving, Utility Assessment Projects, <br />Utility Impact Fee, etc.) <br />THROUGH: Joseph A. Baird , <br />Assistant County Administrato <br />FROM: Jason E. Brown <br />Budget Manager 0 <br />DESCRIPTIONS AND CONDITIONS <br />In December of each year the Board of Commissioners adjusts the fixed interest rates charged <br />by the County for financing utility assessments, utility impact fees, petition paving assessments <br />and any other financing. For the 2001 calendar year, the assessment/financing fixed interest <br />rate was set at the prime rate of 8.5% (8 %%) on January 2, 2001. Due to rapidly declining <br />interest rates during 2001, the Board of Commissioners adjusted the rate to 6.75% (6 '/a%) in <br />July, which was equivalent to the prime rate at the time. <br />The prime interest rate published in the Wall Street Journal on Thursday, December 13, 2001, <br />was 4.75% (4'/a%). Staff recommends adjusting the interest rate charged by the County to the <br />current prime rate, which would mean a decrease of 2.0% from the rate for 2001. The only <br />exception to this interest rate would be for projects directly affiliated with a bond issue for which <br />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 />4.75% (4 '/<%), which is equivalent to the prime rate published in the Wall Street Journal on <br />December 13, 2001, for calendar year 2002. <br />DECEMBER 18, 2001 <br />-31- <br />