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Discussion Regarding County Debt Financing
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BRIEF OVERVIEW
Hernando County has several infrastructure and capital projects planned soon to meet current demand and future growth. To complete these projects, the County will need to borrow funds.
During the April 8, 2025, BOCC meeting, the board approved a reimbursing resolution, Resolution 2025-072, to facilitate the County being able to reimburse itself for any funds that are expended relating to those projects ahead of any borrowings.
A summary of the attached project listing includes public safety training complex, fire station, animal shelter expansion, pier and bridge replacement, multipurpose recreational fields, baseball fields, observation tower, preserve improvements, county buildings renovations, purchase and construction of facilities and economic development projects relating to airport infrastructure.
Per Debt Management Policy No. 41-01, the County Department, County Administration, Budget Director, The Clerk of Court's Financial Services Department and the County's Financial Advisor will determine the best instrument for these borrowings.
FINANCIAL IMPACT
Debt Service Payments on amounts borrowed at current interest rates for variable lengths of time from available revenue sources. Bond payments would be payable from Impact Fees, EMS MSTU (Municipal Service Taxing Unit), FIRE MSBU (Municipal Services Benefit Unit), Tourist Tax, Tangible Personal Property Tax, General Fund.
LEGAL NOTE
The Board has the authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board discuss and provide direction regarding long-term financing needs. In addition, it is further recommended that the Board confirm final project list and approve borrowing funds for those projects.