Hernando County OKs $6 million, 10-year note to finance fleet purchases

The Hernando County Board of County Commissioners voted 5-0 on May 27 to authorize issuance of a series 2025 note to finance fleet vehicle and heavy-equipment purchases.

Finance Director Josh Stringfellow told the board the loan award from TD Equipment Finance carries a 10‑year term at a 3.53% interest rate and will fund purchases the county already made under a prior reimbursement resolution. "The rate on this loan is 3.53%, which we feel is a great opportunity for the county to finance these fleet items," Stringfellow said.

The board had approved a reimbursement resolution on April 8 allowing departments to buy vehicles in advance of formal borrowing. Stringfellow told commissioners the county received strong market interest, reflecting its AA- bond rating, and that the note includes issuance costs but no bank closing fees. He also said the note lacks a meaningful early‑call provision because the lower rate was negotiated in exchange for limited call flexibility.

Commissioners asked for additional transparency about vehicle replacement criteria and fleet management practice. Commissioner Steve Champion said he welcomed the low rate but requested more public information about how the fleet determines whether vehicles are replaced or repaired. Fleet Manager Doug Livermore described typical replacement triggers and provided per-unit cost examples during the discussion.

Vote and next steps: Commissioner Steve Champion moved approval; motion passed 5-0. The board recessed briefly after the vote to sign closing documents.

Why it matters: Spreading the cost of large equipment over a decade preserves cashflow for general fund operations, but shifts long-term debt onto future budgets. The county and commissioners pressed staff to publish clear replacement criteria and life‑cycle cost data to justify future purchases.