Vote: approved

Item Text

35. CAPITAL LEASE DOCUMENTS AND DECLARATION OF OFFICIAL INTENT FOR FINANCING OF COUNTY DEPARTMENTAL VEHICLES Authorize the Chairman to approve and execute all capital lease documents (to be periodically submitted for Board signature by the Department of Finance), including the “Declaration of Official Intent,” in an amount not to exceed $10,871,840 (principal), as required for reimbursement of expenditures related to the acquisition of capital assets. Authorize appropriate departmental representatives to co-sign lease documents pertaining to their respective departments. All capital lease documents are subject to County Attorney approval. Equipment Services Department will be expending funds for General Fund, Detention Fund, Transportation (HURF) Fund, Spur Cross Ranch Conservation Fund, Lake Pleasant Recreation Services Fund, and Parks Enhancement Fund vehicles which will be reimbursed from the proceeds of the capital lease. The Department of Finance will periodically facilitate the reimbursement from capital leases during fiscal year 2016-17. Expenditures associated with vehicle purchases will be periodically bundled for capital lease financing. At which time the interest rate(s) will be bid and repayment terms and amounts for principal and interest will be known. Capital lease(s) maturity will be thirteen months. Capital lease financing will be facilitated by the County’s master personal property lease contract as approved by the Board of Supervisors on August 19, 2015 and January 13, 2016. There is a need for the County to enter into capital leases for vehicle purchases. General Fund, Detention Fund, Transportation (HURF) Fund, Spur Cross Ranch Conservation Fund, Lake Pleasant Recreation Services Fund, and Parks Enhancement Fund will purchase vehicles that will be periodically financed by the master personal property lease contract for Equipment Services capital purchases. The Declaration of Official Intent will satisfy the 60-day reimbursement period for reimbursement of original expenditures, as required by Treasury Regulation §1.150-2(d)(1) (1993). Capital outlay expenditures from capital lease proceeds and the corresponding debt service payments for principal and interest are not subject to the County Expenditure Limitation Report (ELR). Capital leases will extend the debt service payments into the subsequent fiscal year (FY 2017-18). The benefit to the County for entering into capital leases is the debt payments are exempt from the ELR. (C-18-17-001-4-00)

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