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Home My WebLink AboutRES-2009-082 Declaring a Public Necessity for enrollment of certain public properties as wireless telecommunication Facilities (Tower) SitesGRANGE CGUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January ~~, ~ooo Action Agenda Item No. ~ -~ SUBJECT: Proposal for Issuance of Capital Project Financin DEPARTMENT: Finance Department PUBLIC HEARING: ~YIN~ No ATTACHMENT(S): Project Financing Schedule Resolution INFORMATION CONTACT: Gary Humphreys 919-~45~~453 Robert Jessup 91917551800 PURPOSE: To present a proposal for issuance of Capital Project financing to address financing needs related to authorized capital projects. BACI~CGRC~UND: At the August 19, 2008 meeting the Board of County Commissioners approved staff moving forward with plans, to issue alternative financing rather than general obligation bonds far the remaining $8.9 million of Alternative ~ Housing and Parks and open Space authorization from X001 voter approved bonds: As stated at that time the intent was to proceed with a Request for Proposals ~RFP~ for issuing direct bank financing for this purpose early in 2009 along with financing for the County Campus and other projects which have been approved by the Board. At the September 16, X008 meet'[ng the Board author'~zed financing the purchase of a refuse truck for the Sanitation division of Solid vllaste in the amount of $211,440. Earlier on this agenda, the Board considered a proposal far the P[MS system which has a preliminary cost estimate of $x,500,000. Staff proposes to finance $1,540,000 at this time and issue the remainder in early 2010. These two items do not require Local Government Commission ~LGG} approval because the financing term is less than five years. Staff believes current market conditions favor this approach and are requesting to praceed with alternative financing to be issued in April of 2009. The County projects proposed for this financing are as follows: County Campus and library Development $25,DDD,DDD Parks & open Space 5,5DD,DDD Affordable Housing 1,4DD,DDD P[MS System ~,SDO,DDD Sold 1Naste equipment ~7 DDD 3~ 6~~ 000 2 The Gateway portion of County Campus project will be purchased in mid~February of 2009. A reimbursement resolution will be completed for this project to enable reimbursement when the financing is~ciosed in April X009. It is currently anticipated the remainder of the County Campus project will be purchased in the June-July timeframe. The Affordable Housing financing has already been committed to specific projects. The Parks and Gpen Space financing is likewise committed to complete the 2001 referendum projects. Because it is unlikely financing for the school project will occur this summer, staff is proposing to finance the entire County campus as part of this issuance. The County's debt capacity calculations generally contemplate the issuance of debt to be repaid over atwenty-year period. The recent Animal Shelter financing was issued fora 15•year term because interest rates offered fora 15 year financing were more favorable than those offered for ~o years. Financing over a shorter timeframe will result in a reduction in the amount of debt the County can issue under its debt policy which calls for maintaining debt service expenditures on general fund debt to 15°/0 of budgeted expenditures. Staff will again seek proposals for both 15 and 20 year terms as this could prove.to be a critical factor under current.market conditions. The financing will be structured to minimize the debt service in fiscal year 200910 so the county can remain consistent with its debt policy. A proposed schedule is attached for an April issuance. ~ Staff requests the Board authorize moving forward in accordance with the proposed schedule by adopting the attached resolution prepared by Bond Counsel which 1}provides for reimbursement of project expenditures from the financing, 2} authorizes staff to proceed with issuing an RFP for financing and 3} sets a public hearing for March 3, 2009. FINANCIAL IMPACT: There is no financial impact related to this action. However there will be a financial impact in proceeding with the actual issuance of the bonds. The impact will vary based on the terms of the debt. Staff will estimate the impact upon receipt of the financing proposals. RFCC]MM~NDATIUN~S}: The Manager recommends the Board authorize staff to proceed with plans to issue debt in April 2009 by approval of the attached resolution. 3 Orange County 2009 Installment Financing -- Gatewav Center etc. Projects -Schedule County makes initial contact with LGC [done] Group meeting to discuss financing needs and schedule Week of 1/5 County Board -adopt reimbursement resolution; BOCC meeting of 1/22 authorize distribution of bank loan RFP; discuss staff proposal on financing plan; call for public hearing on 3/3 Follow-up meeting with LGC staff on general financing Before 2/3 plan BOCC confirms plan for Spring financing package BOCC meeting of 2/3 County sends out bank loan RFP 2/4 Publish notice of County public hearing By 2/19 BOCC conducts public hearing; adopts findings BOCC meeting of 3/3 resolution County's preliminary application due to LGC By 3/6 Bank proposals due back to the County By 3/ 10 County Board adopts resolution giving final approval to BOCC meeting of 3/17 financing terms and documents LGC approval ' 4/7 Closing 4/ 14 or thereafter 1005I6v~ Resolution making a preliminary determination to proceed with 2009 alternative financing WHEREAS, The Board of Commissioners of Orange County has previously determined to undertake the acquisition and construction of various projects, as described below. In addition, the Board has previously determined to finance costs for these projects by the use of an installment financing, as authorized under Section 160A- 20 of the North Carolina General Statutes. County staff has advised the Board that it would be desirable for the Board to adopt this resolution making a preliminary determination to proceed with the financing, and taking appropriate related action. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The County makes a preliminary determination to finance project costs, as follows: Component County campus and library development Parks and open space projects Affordable housing projects Tax System Solid waste equipment Estimated Maximum Amount ($) 25,000,000 5,500,000 1,400,000 1,500,000 217,000 The Board will determine the final list of projects to be financed, and the final amount of financing, by a later resolution. The total amount financed may reflect adjustments to the amounts listed above and may include amounts for financing costs. 2. The Finance Officer is authorized and directed to take all appropriate steps towaxd the completion of the financing, including (a) completing an application to the LGC for its approval of the proposed financing, and (b) soliciting one or more proposals from financial institutions to provide the financing. 9826~v1 3. The County intends that the adoption of this resolution will be a declaration of the County's official intent to reimburse project expenditures from financing proceeds. The County. intends that funds that have been advanced for project costs, or which may be so advanced, from the County's general fund, or any other County fund, may be reimbursed from the financing proceeds. 4. The Board will hold a public hearing on this matter. The County Manager is authorized and directed to set the date and time of the hearing, and the Clerk to this Board is authorized and directed to publish a notice of such public hearing in the manner provided for by law. 5. This resolution'takes effect immediately. ~ ~ ~ ~ ~ ~ ~ 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 January 22, 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. [sEa.~,~ Donna Baker Clerk, Board of Commissioners Orange County, North Carolina 982~~v1