SUBJECT: DEBT FINANCING, LEASE PURCHASES OF COUNTY EQUIPMENT

EFFECTIVE DATE: February 1, 1992

The Board of Supervisors has established a Debt Advisory Committee to coordinate the evaluation and structuring of all County debt requirements. This includes purchase of County equipment through lease-purchase mechanisms. This administrative regulation implements the policy direction of the Board of Supervisors regarding the coordination of County issued debt.

Departments wishing to secure equipment or facilities through the issuance of taxable or tax exempt debt and/or the entering into of lease-purchase contracts should follow the following procedure:

a. Review by the Office of the County Administrator
Departments should initiate debt purchases by providing the County Administrator with a memorandum outlining the proposal. Departments should clearly explain the need for the equipment or purchase and why it cannot be purchased on a cash basis. Departments should also explain the Financing proposal by the vendor if one is offered, the annual percentage rate, the term, and total cost of the lease-purchase.
Upon a determination by the County Administrator on the essentiality of the purchase and the need to provide some type of deferred financing, the matter will be referred to the Debt Advisory Committee.

b. Review by the Debt Advisory Committee
The Debt Advisory Committee shall review the proposal and make a recommendation to the Board of Supervisors on the type, term, and amount of debt to be issued.

c. Coordination of Annual Purchases
Each year, on adoption of the final budget, the Auditor-Controller shall advise the County Administrator and the members of the Debt Advisory Committee of all lease-purchase items authorized in the final budget. The Committee shall review and consider structuring an omnibus financing for all such equipment.

d. Debt Advisory Committee
Pursuant to the action of the Board of Supervisors, the Debt Advisory Committee consists of the County Administrator, the Treasurer-Tax Collector, the County Counsel, the Auditor-Controller, and the Redevelopment Agency Executive Director.