Caroline County selects Atlantic Union for FY26 equipment financing; board adopts lease resolution

Caroline County staff reported on an RFP process for FY26 equipment financing and recommended Atlantic Union as the financing provider. The county received nine proposals; Atlantic Union submitted the lowest blended rate and offered full prepayment flexibility with no penalty, producing a true interest cost the presenter summarized as approximately 3.55 percent.

The presenter (county finance staff) explained the request covered multiple equipment tranches with varying useful lives (five to ten years) and that Atlantic Union’s proposal was fully credit‑approved and fixed through closing. Bank of America submitted the next best proposal with a blended cost the presenter described around 3.62 percent but imposed earlier prepayment restrictions.

Board members asked whether the county could instead spend fund balance to buy down the equipment purchases. Finance staff and administration explained the FY26 budget anticipated financing these assets (and that fund balance was planned for other one‑time priorities), and noted the county’s unassigned fund balance and debt position would be monitored. After discussion the board moved, seconded and adopted a resolution approving the equipment leasing and purchase agreement with Atlantic Union, with staff instructed to complete closing in the current month.

The board discussed the county’s broader fund balance and capital priorities during the debate; staff noted the county’s unassigned fund balance (presented in meeting materials) and how the county is balancing borrowing for equipment and other capital projects.