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HomeMy WebLinkAboutC.054.93009_2272CONTINUATION OF DISCUSSION AND/OR DECISION REGARDING THE LOAN FOR A NEW MOBILE AIR UNIT: Mrs. Blumenstein said the county had previously been approached by a representative of the Air Mobile Unit Committee about a loan request in the amount of $100,000. The money would be used to purchase a $248,815 new mobile air unit. On March 15,1999, the Fire Tax District Board (FTDB) agreed to fund $50,000 each year for the next three years for the new unit. The Air Mobile Unit Committee has all of the funds for the new vehicle except for the $50,000 in the FY 2000-2001 fire tax budget and the $50,000 in the FY 2001- 2002 fire tax budget. Blumenstein said that if the resolution were approved, the county would lease the unit to the Iredell County Firemen's Association. When the loan is repaid in 24 months, the title will be written to the Firemen's Association. Mrs. Blumenstein noted that at the meeting on September 21, 1999, she had said there would be $6800 in interest that would need to be paid. However, if the sales taxes are deducted from the $6800, there will be a net difference of $3600. MOTION by Commissioner Johnson to (I ) approve the resolution presented by the finance director in reference to the financing (2) make provisions whereby all of the interest incurred by the loan will be paid by sales tax reimbursements and from the county -wide service district ($3,600 to be appropriated in the FY 2001-2002 budget and used at the time of the final loan payment) and (3) approve Budget Amendment #13 which will (a) reclassify the $50,000 appropriation to the Iredell County Firemen's Association (b) recognize the $100,000 loan and the $99,707 from the other agencies participating in the transaction and (c) appropriate the funds for the purchase of anew air van. VOTING: Ayes - 5; Nays - 0. RESOLUTIONAPPROVING FINANCING TERMS WHEREAS, Iredell County ("County') has previously determined to undertake a project for a Mobile Air Unit, and the finance officer has presented a proposal for the financing ofsuch Project. BE IT THEREFORE RESOLVED, as follows: 1. The county hereby determines tofinance the Project through Branch Banking and Trust Company ("BB&T'), in accordance with the proposal dated September 8, 1999. The amount financed shall not exceed $100,000, the annual interest rate (in the absence ofdefault or change in tax status) shall not exceed 4.53%, and the financing term shall not exceed two (2) years from closing. 2. All financing contracts and all related documents for the closing of thefinancing (the "Financing Documents') shall be consistent with the foregoing terns. All officers and employees of the County, are hereby authorized and directed to execute and deliver any Financing Documents, and to take all such further action as they may consider necessary or desirable, to carry out thefinancing of the Project as contemplated by the proposal and this resolution. The Financing Documents shall include a Financing Agreement and an Escrow Agreement as BB&T may request. 3. The Finance Officer is hereby authorized and directed to hold executed copies of the Financing Documents wail the conditions for the delivery of the Financing Documents have been completed to such officer's satisfaction. The Finance Officer is authorized to approve changes to any Financing Documents previously signed by County officers or employees, provided that such changes shall not substantially alter the indent ofsuch documents or certificates from the intent expressed in the forms executed by such officers. The Financing Documents shall be in such final forms as the Finance Officer shall approve, with the Finance Off cer's release oj'any Financing Document for delivery constituting conclusive evidence ofsuch officer's final approval of the Document's final form. 4. The County shall not take or omit to take any action the taking or omission of which shall cause its interest payments on this financing to be includable in the gross income forfederal income tax purposes of'the registered owners of the interest payment obligations. The County hereby designates its obligations to make principal and interest payments under the Financing Documents as "qualified tux -exempt obligations "for the purpose of /nternal Revenue Code Section 265(6)(3).