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Included in the proposed budget are allocated annual debt service payments of $1,232,702.04 for <br />this project. This amount was arrived at by using 6.50% for 12 years. <br /> <br />Based on my review of this financial information, I would recommend that Cabarrus County elect <br />the lowest rate of 4.71% for 10 years. This would only require an additional $20,079.68 added to <br />the proposed budget debt service request, saving $567,022.00 in interest expense over choosing <br />the 12 year te~m. Because of this excellent rate, I would also recommend financing the entire 9.9 <br />million since we can use our County fund balance for investments yielding currently about 6.00%, <br />while only paying 4.71% for cost offimds borrowed. <br /> <br />The Board of Commissioners would need to take the following steps at the June 5, 1995 meeting: <br /> <br />Hold a public hearing regarding the bank bids and term~ of the financ'mg. <br />Initiate a motion to accept the low bid fi:om First Union National Bank and choose <br />the <br />Authorize Chairman Bamhart to execute the finalized lease agreement upon <br />closing of the loan. <br /> <br />I w-iH be available at the meeting for the public hearing and to answer any questions you m~y have <br />concerning the financing of this project. <br /> <br /> <br />