Primary Department: Management and Budget
Primary Department Head/Elected Official: Daniel Ramos, Executive Director
Secondary Department: Universal Services
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Supplemental RCA
Type of Request: Commercial Paper
Project ID (if applicable): NB001
Vendor/Entity Legal Name (if applicable):
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): Choose an item.
Request Summary (Agenda Caption):
title
Request by the Office of Management and Budget for approval of commercial paper funding for Universal Services for the Fleet Vehicles (continuous) project in the additional amount of $21,720,000 for a total CP funding of $135,780,000.
end
Background and Discussion:
Commercial Paper Series A-1 can be used for (1) construction of public works, (2) the purchase of automobiles, equipment and machinery, including computers, materials and supplies for the operation of the County’s precincts and departments (3) Professional services, including services provided by engineers, architects, attorneys, auditors, financial advisors, and fiscal agents, in connection with the contractual obligations described in (1) and (2).
Commercial Paper is being requested for the Universal Services for the Fleet Vehicles (continuous) project and is expected to be repaid within the next three fiscal years either through bonds, budgetary means or pay-as-you-go sources. This is for approval for allocation of Commercial Paper for a previously approved project within the previously authorized amount.
Expected Impact:
Vehicles, as assets with a medium-term life, should generally be purchased with CIP funds, rather than cash. Using funding sources that match the asset’s lifespan allows the County to make better use of its limited resources, freeing up General Fund for departments to use on non-capitalizable operational expenses. It also is a more efficient way of leveraging taxpayer dollars to provide services.
Furthermore, using debt to purchase vehicles allows the County to replace vehicles more quickly, providing safer, higher quality vehicles for County employees to perform their duties and serve constituents as well as reducing maintenance costs and vehicle maintenance downtime.
Alternative Options:
Harris County could continue to purchase vehicles using Fleet Fund or another paygo source. Any funding like this used on vehicles would not be available for any other uses.
Harris County could choose not to fund last year’s encumbrances with commercial paper. This would lessen the amount of CIP funding needed, but it would require an outflow of nearly $14 million in cash in the next several months.
Harris County could not carry forward budget from SFY22, but this may unfairly penalize those departments that were unable to place vehicle orders due to unusual market conditions.
Harris County could purchase fewer vehicles. This would also lessen the amount of CIP funds used to purchase vehicles, but it would mean County departments would have to keep older vehicles longer. It would also increase overall maintenance and repair costs, which are higher for older vehicles.
Harris County could purchase more vehicles. This would speed up the replacement of older vehicles, but it could lead to a less regular replacement cycle in the future and less predictability. Furthermore, new vehicle prices are at record highs and used vehicle prices are near record highs. It would be unwise to replace vehicles aggressively under such market conditions.
County Strategic Plan Goal: Choose an item.
County Strategic Plan Objective: Choose an item.
Justice/Safety Initiative (Goal 1): Choose an item.
Infrastructure Initiative (Goal 2): Choose an item.
Economy Initiative (Goal 3): Choose an item.
Health Initiative (Goal 4): Choose an item.
Climate/Resilience Initiative (Goal 5): Choose an item.
Housing Initiative (Goal 6): Choose an item.
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
|
|
|
|
11/15/22 |
22 |
Approval of a reimbursement resolution to allow CIP funds to reimburse non -CIP vehicle expenses, applies to all eligible expenditures made on or after a date 60 days prior to approval. |
|
2/21/23 |
32 |
Authorization of $41,562,716 |
|
3/14/2023 |
23-1418 |
Request for CP funding in the amount of $24,000,000 for a total CP funding of $40,500,000 (Series D) |
|
8/8/2023 |
23-4406 |
Request for CP funding in the amount of $15,000,000 for a total CP funding of $55,500,000 (Series D) |
|
10/10/2023 |
23-5762 |
Request for approval of the Final Investment Memo for an additional incremental authorization of $33,560,000 for a FY24 authorization of $41,360,000. |
|
10/31/2023 |
23-6369 |
Allocated CP in the amount of $10,000,000 (Series D) |
|
3/26/2024 |
24-1526 |
Request for CP funding in the amount for $5,000,000 (Series D) |
|
8/24/2024 |
24-5060 |
Request for CP funding in the amount for $18,560,000 (Series A-1) |
|
10/8/2024 |
24-6194 |
Request for CP funding in the amount for $10,000,000 (Series D) |
|
12/10/2024 |
24-7820 |
Request for CP funding in the amount of $15,000,000 (Series D) |
Location:
Address (if applicable):
Precinct(s): Choose an item.
|
Fiscal and Personnel Summary |
|
Service Name |
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|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
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|
Labor |
Non-Labor |
Total |
Recurring Expenses |
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Funding Sources |
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|
Existing Budget |
|
|
|
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Existing Budget |
$ |
$ |
$ |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Commercial Paper |
$ |
$21,720,000 |
$21,720,000 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$21,720,000 |
$21,720,000 |
$ |
|
Total Funding Sources |
$ |
$21,720,000 |
$21,720,000 |
$ |
|
Grants - Proposed Budget (To be filled out by Grants staff only) |
|
|
Labor |
Non-Labor |
Total |
No. of Grant Years |
|
Local Match Source - Existing Budget: Choose an item. |
$ |
$ |
$ |
|
|
Local Match Source - Additional Budget Request: Choose an item. |
$ |
$ |
$ |
|
|
Grant Funds Applied for/Awarded (Total) |
$ |
$ |
$ |
|
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
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Additional Positions Request |
- |
- |
- |
- |
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Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: 4/10/2025
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Amy Perez, Deputy Executive Director, Office of Management and Budget
Attachments (if applicable): N/A