Town Council continues discussion of Police Radio Financing

More from the October 15th Town Council worksession:

On September 10th, 2018 Town Council approved the purchase of a new radio system for the Police Department in the amount of $545,000. The funding was taken from the General Fund Balance with the intention that future discussion would take place regarding options of
financing or loans from fund balance.

The Town has been made aware of additional funding that will be needed in order to provide appropriate network connectivity for the radio system. Two of the three options may require the Town to obtain additional financing, the third option from Shentel would not require additional financing, but would require future annual budget allocations should the Town choose to move forward with the third option.

Council was requested to review the following options with the assumption that the cost for the radio system remains $545,000 and the network connectivity to be absorbed in the annual budgets moving forward :

Option A
Make no changes and allow general fund balance to pay for the full radio system

Option B
Finance the full balance of $545,000 using an option through VML Vaco with an annual interest rate of
3.389% over a 10 year period with annual payments totaling $65,305.46. Total interest paid over the
ten year period would be approximately $106,650.

Option C
Pursue financing half of the purchase price ($272,500) and taking half of the purchase price from fund
balance. Financing for a term of 5 years with payments of approximately $62,000 or financing for a
term of 10 years with payments of approximately $33,000.

Option D
Making an internal loan from water or sewer fund balance for the full amount of $545,000 with no
interest over a 10 year period; annual payment of $54,500.

The Town staff recommends to move forward Option B, financing the full amount of $545,000 with VML Vaco and making payments of $65,305.46 for a period of 10 years.

Staff does not recommend to use funds from the water fund or sewer fund until additional information is known regarding major projects such as the water looping project or the possible further expansion of the waste water treatment plant.

Download additional information from Town staff here.