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Resolution Accepting Proposal of DNT Asset Trust 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 2024
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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 2024 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, DNT Asset Trust (a wholly owned subsidiary of JPMorgan Chase Bank, NA) 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 2024 which will evidence a term loan from DNT Asset Trust.
The loan amount will not exceed $5.5 million although it is expected to be around $4.8 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 FY2025 and will be included in the FY2025 and future years' budgets using legally available Non-Ad Valorem Revenues.
LEGAL NOTE
The Board is authorized to take this action pursuant to ? 125.01...
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