TO: Members of the Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
FROM: Kristin Daniels, Director, Office of Management & Budget
DATE: November 21, 2025
SUBJECT: Interest Rate Change on All County Financing (Petition Paving, Utility Assessment Projects, Utility Impact Fees, etc.)
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BACKGROUND
Each year the Board of County Commissioners adjusts the fixed interest rates charged by the County for financing utility assessments, utility impact fees, petition paving assessments and any other financing. County policy has been to set this rate equivalent to the prime interest rate.
ANALYSIS
The prime interest rate according to Bloomberg on November 17, 2025, was 7.00%, which is down from 7.75% last year. In light of the recent increase in assessment projects being completed, and the prime interest rate being relatively high, Staff is proposing the practice of indexing to the prime interest rate be reconsidered.
During fiscal year 2024/2025, the County earned an average rate of return on its investment portfolio of 4.3%. Staff proposes the Board consider setting the interest rate on all County financing to equal the previous fiscal year’s average rate of return. This rate is arguably the amount of revenue the County is foregoing when lending funds out to assist property owners with the financing of County projects. By decreasing the interest rate paid by property owners, the County is essentially lessening the financial burden on those impacted.
The only exception to this interest rate would be for projects directly affiliated with a bond issue for which the bond covenants dictate a different interest rate, or the monies used for financing are accruing a higher interest rate for the issuance of debt in which case the rate shall be set at the higher amount.
BUDGETARY IMPACT
Any interest rate revenue received from County financing will be deposited...
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