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Commissioner Hovis - Financial and Management Services - Finance - To Award Bid for Financing and Cost of Issuance up to $6,606,000.00 for Rolling Stock and Equipment to PNC Bank, National Association, to Approve the Attached Budget Change Request, and Installment Financing Agreement with Financing Terms and Debt Payment Obligations Through June 1, 2028
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STAFF CONTACT
Kyle Sutherland - Finance - 704-866-3130
BUDGET IMPACT
budget
Community Investment Fund: Recognize financing proceeds of $6,606,000.00, return $6,495,578.00 to fund balance, and transfer $40,000.00 to the Debt Service fund and $70,422.00 to the General Fund.
Debt Service Fund: Increase Transfers In and Expenditures by $40,000.00
General Fund: Increase Transfers In and return to fund balance an amount of $70,422.00
The County is obligated to make payments on this debt through June 1, 2028.
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BACKGROUND
By approval of this action, the Gaston County Board of Commissioners finds that the financing of the acquisition of the vehicles (rolling stock and ambulances), equipment (Jail Video Storage), and cost of issuance totaling up to $6,606,000.00 pursuant to the terms of the installment financing agreement with PNC Bank, National Association is in the best interest of Gaston County and hereby authorizes the execution of such contract and delivery of documents in connection therewith, and approves the County’s debt obligation through June 1, 2028 per the attached Installment Financing Agreement.
The County staff received eleven bids for the financing and recommends PNC Bank, National Association, as the lowest responsible bidder at a rate of 3.24% for the 36 months’ term. The Board designates the obligations of the County to make payment under the proposed installment financing agreement as “non-bank qualified” obligations in accordance with the provisions of Section 265 (b)(3)(ii) of the Tax Reform Act of 1986, as amended. If any of the equipment or other items on the list are received before the financing documents are fully executed, the County staff is authorized, if necessary, to make payment directly to the appropriate vendor and to obtain subsequent reimbursement from the financial institution providing financing.
On July 22, 2025, the Board approved Resolution 2025-246 which contained an appropriation ($7,250,690.14) from Community Investment Fund fund balance for the purchase of vehicles due to the volatile vehicle market and manufacturers implementing early cutoff dates. The Resolution also appropriated $539,047.65 from General Fund fund balance for the Sheriff’s Jail Video Storage project. The attached Budget Change Request returns the $6,495,578.00 back to the Community Investment Fund fund balance and $70,422.00 back to General Fund fund balance from the financing proceeds. The attached Budget Change Request also appropriates $40,000 to the Debt Service Fund to be used for cost of issuance associated with the vehicle financing.
The original appropriation from Community Investment Fund fund balance of $7,250,690.14 was based on estimates and contained contingency funds. Due to market volatility, the quotes came back approximately $224,198.14 less - these funds will be returned to fund balance. The $530,914.00 of contingency funds was not financed. The original appropriation from General Fund fund balance of $539,047.65 contained $74,022.00 which was eligible to be included in the financing and this amount is being returned to General Fund fund balance.
POLICY IMPACT
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ATTACHMENTS
Installment Financing Agreement; Budget Change Request (BCR); Schedule of Vehicles