Vote: approved

Item Text

45. CAPITAL LEASE DOCUMENTS FOR FINANCING OF COUNTY EQUIPMENT AND THE DECLARATION OF OFFICIAL INTENT 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 $47,816,660 (principal), as required for reimbursement of expenditures related to the acquisition of County equipment such as vehicles, radios, computers, and a helicopter. Authorize appropriate departmental representatives to co-sign lease documents pertaining to their respective departments. All capital lease documents are subject to County Attorney approval. The Department of Finance will facilitate the reimbursement from capital leases during fiscal year 2021. Expenditures associated with equipment purchases will be 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. In addition, the County will be negotiating a new master personal property lease contract which is anticipated to be put in place by December 2020. The repayment of the capital leases has been budgeted. There is a need for the County to enter capital leases for equipment purchases. Purchased equipment will be financed by the master personal property lease contract for County 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 2021-22). The benefit to the County for entering into capital leases is the debt payments are exempt from the ELR. (C-18-21-001-X-00)

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