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Resolution Accepting Proposal of TD Equipment Finance, Inc., to Provide Term Loan to Finance Costs of Acquisition of Vehicles and Equipment for County’s Fleet Replacement Program; Approving Loan Agreement; and Authorizing Issuance of Non-Ad Valorem Revenue Note, Series 2025
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BRIEF OVERVIEW
Hernando County manages a Fleet Replacement Program to support the department’s goal of responding rapidly and effectively to the transportation, equipment maintenance and procurement of the Hernando County Departments and agencies. The County often utilizes debt to allow for the cost of vehicles to various departments to match the period of use more closely. Approval of the Series 2025 Note Resolution will allow the County to obtain a term loan to acquire the funds needed for various vehicle needs. In response to a request for proposals, TD Equipment Finance, Inc., provided the County with the best overall proposal to provide the County with a term loan for the acquisition of these vehicles.
Per Debt Management Policy 41-01, the County Department, County Administration, Budget Director, the Clerk of Court's Financial Services Department, and the County's Financial Advisor have determined that the best instrument for these borrowings is the 10-year Non-Ad Valorem Revenue Note, Series 2025 which will evidence a term loan from TD Equipment Finance, Inc.
The loan amount will not exceed $6 million. It is anticipated that final figures will be available when the Board of County Commissioners meet to approve the resolution and related documents.
FINANCIAL IMPACT
All fees and costs associated with the resulting note transaction will be paid from the proceeds of the note. Debt service will begin in FY2026 and will be included in the FY2026 and future years’ budgets using legally available Non-Ad Valorem Revenues.
LEGAL NOTE
The Board is authorized to act on this matter pursuant to § 125.013, F.S.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on the attached resolution and related documents which authorize the execution and delivery of a Loan Agreement with TD Equipment Finance, Inc., and the issuance of the Non-Ad Valorem Revenue Note, Series 2025 to finance and reimburse costs of the acquisition of vehicles and equipment for the County’s Fleet Replacement Program and to pay the costs of issuing the Note.