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Commissioner Keigher - Finance - To Award Bid for Financing up to $2,273,225 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
Linda Grimsley - Interim Finance Director - 704-866-3035
BUDGET IMPACT
budget
The County is obligated to make payments on this debt through February 2021.
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BUDGET ORDINANCE IMPACT
Loan proceeds will be received from Bank of America and appropriated in the various departmental accounts as on the attached 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 $2,273,225 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 County staff received five bids for the financing and recommends Bank of America as the lowest responsible bidder at a rate of 2.6230% for the thirty-six month term. 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 financing.
POLICY IMPACT
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ATTACHMENTS
Resolution and Budget Change Request