HomeMy WebLinkAboutRES-2009-019 Providing Final Approval of Terms and Agreements for County's 2009 Alternative FinancingResolution supporting an application to the Local Government Commission
for its approval of alternative financing arrangements for the County
WHEREAS,
The Orange County Board of Commissioners has previously determined to
undertake certain capital projects, as further described below:
Proiect Approximate Amount To Be Financed
Acquisition and equipping of County
portion of Gateway Center, County
office building and library, and library
development $25,000,000
Parks and open space projects $5,500,000
Affordable housing projects $1,400,000
Solid waste equipment $217,000
Property management information
system $1,500,000
The Board has previously made a preliminary determination to finance costs
for these projects by the use of an installment contract, as authorized under Section
160A-20 of the North Carolina General Statutes.
Under the guidelines of the North Carolina Local Government Commission,
this governing body must make certain findings of fact to support the County's
application for the LGC's approval of the County's proposed financing
arrangements.
BE IT RESOLVED by the Board of Commissioners of Orange County,
North Carolina, that the County confirms its preliminary determination to carry
out and finance the projects described above. The Board will make a final
determination of the projects and amounts to be financed, and make a final
approval of financing terms and conditions, by a subsequent resolution.
BE IT FURTHER RESOLVED that the Board of Commissioners makes
the following findings of fact:
(1) The proposed projects are necessary and appropriate for the County
under all the circumstances. The Gateway Center, office building and library
projects will provide needed space for County functions in acost-effective manner.
The parks, open space and affordable housing projects will help carry out County
policies that have been repeatedly approved by the Board. The solid waste and
property management information system projects will provide needed equipment
useful in maintaining and improving the efficiency of County operations.
(2) The proposed installment financing is preferable to a bond issue for
the same purpose under all the circumstances.
The County has no meaningful ability to issue general obligation bonds for
the Gateway Center, office building, library, solid waste equipment or PIM system.
These financings are for discrete facilities and therefore particularly suitable for
installment financing. Although the parks, open space and affordable housing
projects represent projects for which the County's voters have approved general
obligation bonds, it is more cost effective to finance those projects in this larger
installment financing than to proceed with a separate bond financing for the
relatively small amount of authorized bonds.
None of these projects will produce any revenues that could be used to
support aself-liquidating financing. The County has chosen to finance these
projects through installment financing as part of a balanced capital finance
program that includes both installment financings and voter-approved bonds.
(3) The estimated sums to fall due under the proposed financing contract
are adequate and not excessive for the proposed purpose. The County will obtain
competitive lending proposals, and will closely review proposed lending rates
against market rates with guidance from the LGC. Amounts to be financed for each
project will reflect contract prices or other firm costs, except that the amount to be
financed now for the PIM system reflects an estimate of initial financing needs and
may be supplemented.
(4) As confirmed to the Board at this meeting by the County's Finance
Officer, (a) the County's debt management procedures and policies are sound and
in compliance with law, and (b) the County is not in default under any of its debt
service obligations.
(5) The County estimates that debt service on this financing will have a
maximum tax rate equivalent impact of approximately 2.33 cents. This debt service
impact will be higher in initial years, although the County expects to complete
financing arrangements that reduce debt service payable in the 2009-2010 fiscal
year. This debt service impact is contemplated in the County's existing capital
investment program and is consistent with the Board's previously-approved debt
policies.
(6) The County Attorney is of the opinion that the proposed projects are
authorized by law and are purposes for which public funds of the County may be
expended pursuant to the Constitution and laws of North Carolina.
BE IT FURTHER RESOLVED that all actions of the County's Finance
Officer and other County representatives in filing an application with the LGC for
its approval of the project and the proposed financing arrangements, and otherwise
in furtherance of the completion of the contemplated financing, are ratified,
approved and confirmed, and that this resolution takes effect immediately.
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I certify that the foregoing resolution was duly adopted at a meeting of the
Board of Commissioners of Orange County, North Carolina, duly called and held
on March 3, 2009, and that a quorum was present and acting throughout such
meeting. Such resolution remains in full effect as of today.
Dated this day of , 2009.
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k -' ~~~ ~', Donna Baker
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Clerk, Board of Commissioners
~° ~~ ' ~'"~~ Orange County, North Carolina