1. Vector/Weed bldg options - Laserfiche WebLink

CASS CDlJNIY GOVERNMENT ..I.. Auditor RECEIVED JUl .3 0 2004 July 30, 2004 CASS COUNTY COMMISSION Board of County Commissioners Cass County Government 211 9th Street South Fargo ND 58103 RE: Financing for Vector Building Michael Montiplaisir, CPA 701-241-5601 Dear Commissioners: Treasurer On Monday you are considering plans for the construction of a building at the Highway Department for the use of Vector and the Highway Department. The approximate cost of the options are $800,000 for either the combination of option 1 and 3 or option 2. Charlotte Sandvik 701-241-5611 Director of Equalization Frank Klein 701-241-5616 When we originally talked about this building project it was to be County Highway, Vector, and Weed Control participating in the financing of the building. With the elimination of the Weed Control, that leaves the County Highway and Vector Control to finance the building. Keith Berndt included $100,000 in the County Highway budget as a contribution to the construction of the building. Keith indicated that the highway department would use the lunch/training room for highway purposes as the reason for the $100,000 contribution. He also included $125,000 in the Vector Control Budget for annual payments on the building. The $100,000 would be used for the down payment on the building leaving the remaining $700,000 to be financed. The County Commission really has two options to consider. The first option would be to pay cash for the building. The Vector Control board does not have the cash but the county could pay for the building out of either the General Fund or the Building Fund. The second option would be to lease purchase the building with the Vector Control, making annual lease payments a year after the building is complete. The second option is probably the more desirable because it doesn't affect the operation of the General Fund nor reduce cash available for construction of a possible Courthouse addition. The current financing rate for the county would be 3.96% for a six-year lease on $700,000 with annual payments of$133,360. The actual rate would be determined at the time the lease is taken out and most likely would be higher than the current rate. Also affecting the rate would be the length of time the lease would be outstanding, usually the longer the term, the higher the rate. Vector Control is currently limited to 1.00 mill, which generates about $325,000 . Box 2806 h with about an equal amount generated in charges for services. Their 2004 budget 211 Nmth Street Sout is $614,000 with a projected budget of $600,000 for 2005 without the building Fargo, North Dakota 58103 Fax 701-241-5728 www.casscountygov.com