SUBJECT:
Title
General Fund - Clerk to County Commission Transfer - $750,000
Body
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INITIATOR: |
DEPARTMENT: |
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Gregory C. Harrell, Clerk of Court and Comptroller |
Clerk of Court and Comptroller |
DESCRIPTION/BACKGROUND:
The Clerk’s approved budget includes funding to purchase IT replacement equipment in FY 2026-27 through a five-year lease purchase agreement, totaling approximately $2.6 million. The initial lease purchase financing company quoted interest rates that were well above current market interest rates. After discussions with the finance director, county attorney, county financial advisor, and bond counsel, it was determined to be in the best interest of the county to create a master lease for these types of financing situations. The master lease establishes the financing terms with a bank, and as each equipment lease comes up, the bank will provide a financing quote, which the County can either accept, reject, or negotiate. There are long-term benefits for the County to have this financing mechanism in place, including interest rates that are more in line with market rates and saving time and money for these types of equipment financing processes.
There is currently a 6-8 month lead time for most of the IT equipment being ordered. For this reason, a temporary budget amendment is being requested from General Fund Reserves to the Clerk of Court and Comptroller, in the amount of $750,000, while the master lease and financing are being completed. This allows the equipment to be ordered, without further delay, with the funds being returned once the financing is secured (estimated 45-60 days). A separate reimbursement resolution is also on the agenda for consideration by the Board.
BUDGET/IMPACT:
Neutral
RECOMMENDED ACTION:
Recommended action
Approve attached Budget Amendment Resolution.
end