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HomeMy WebLinkAboutRES-2009-071 Seek Qualified School Construction Bond Financing for Carrboro High Cultural Arts Wingd RCS-aoo~,-©~1. Resolution supporting an application to the Local Government Commission for its annroval of school financing arrangements for the County WHEREAS, Representatives of the Chapel Hill - Carrboro Schools have described to County staff and the Board of Commissioners the benefits of undertaking capital improvements for City schools under the federal "Qualified School Construction Bond" program. This program provides zero-interest or very low-interest financing for school projects. The City Schools have applied for authorization to use up to $4.6 million in such financing to finance the proposed arts wing at Carrboro High School. The County is likely to undertake this financing, if it goes forward, pursuant to the installment. financing provisions of Section 160A-20 of the North Carolina General Statutes. The North Carolina Local Government Commission would have to approve any such financing arrangements. Under the LGC's guidelines, this governing body must make certain findings of fact to support the County's application for the LGC's approval of the financing arrangements. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, that the County makes a preliminary determination to carry out and finance the school projects as described above. The Board will make a final determination as to whether to proceed with this financing by a subsequent resolution. If the financing proceeds, the Board will also make a final determination of the projects and amounts to be financed, and give final approval to 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 proposed arts wing has been included in the County-approved capital plan for several years, pending the availability of financing. (2) The proposed installment financing is preferable to a bond issue for the same purpose under all the circumstances. The County has no ability to issue general obligation bonds for these projects without referendum approval, and there is no time to conduct a bond referendum before the December 31 deadline (under federal law) for completing this financing. This project 5 therefore lends itself to the use of installment financing. This financing will be in keeping with the County's approach to balance school project financing between voter-approved bonds and installment financings. (3) The estimated sums to fall due under the proposed financing contract will be adequate and not excessive for the proposed purpose. The contemplated financing will proceed only as qualified school construction bond financing carrying a zero or very low interest rate. Amounts to be financed for each project will reflect contract prices or well-. developed engineering or architectural estimates acceptable to the County. (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 this financing will have no tax rate impact,. in that the repayment of the amounts. financed will be within the exisring resources dedicated to school capital projects. (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, as follows: (a) The Finance Officer is authorized and directed to take all appropriate steps toward the completion of the financing, including (i) completing an application to the LGC for its approval of the proposed financing, and (ii) soliciting one or more proposals from financial institutions to provide the financing. All actions of the County's Finance Officer and other County representatives in furtherance of the completion of the contemplated financing are ratified, approved and confirmed. (b) The County intends that the adoption of this resolution will be a declazation 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. (c) The Board will hold a public hearing on this matter on October 6, 2009. The Clerk to this Board is authorized and directed to publish a notice of such public hearing in the manner provided for by law. (d} 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 September 15, 2009, and that a quorum was present and acting throughout such meeting. Such resolution remains in full effect as of today. ~g - 1, day of September, 2009. F, -_~arn i ~ .*.~.. ~~ _~_ ~:;;-~.~, ar Donna S. Bak r " f~ Clerk, Board of Commissioners ~~. `~~ °~ Orange County, North Carolina o~'b ~ati9~~°4