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Commissioner Keigher - To Award Bid for Financing up to $3,319,761.60 for Rolling Stock and Equipment to Bank of America and to Approve the Attached Budget Change Request (to Appropriate Funds) and Resolution Approving Financing Terms
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STAFF CONTACT
Bryant Morehead - Interim Assistant County Manager - 704-866-3038
BUDGET IMPACT
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The purchase of these vehicles, ambulances and bulldozer were included in the FY 2016 Budget. This item provides for the financing of these items.body
BUDGET ORDINANCE IMPACT
Loan proceeds will be received from Bank of America and appropriated in the various departmental accounts as attached on the budget change request.
BACKGROUND
By approval of this action, the Gaston County Board of Commissioners finds that the financing of the acquisition of the vehicles and other items costing up to $3,319,761.60 pursuant to the terms of an installment purchase contract with Bank of America is in the best interests of Gaston County and hereby authorizes the execution of such contract. The Board designates the obligations of the County to make payment under the proposed installment purchase contract 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 the financing.
POLICY IMPACT
The County is obligated to make payments on this debt for 36 months after closing.