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HomeMy WebLinkAboutRES-2009-016 Resolution Supporting an Application to the Local Government Commission for its Approval of Alterntive Financing Arrangements for the County~e5- a©Oq -o!!v ~Pp ~-a u ~cl '~ -~=oq 5 ct... 3 Resolution 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 s stem $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 fmance 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 5 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. ~ * * * ~ * ~ 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 [SEAL] Clerk, Board of Commissioners Orange County, North Carolina