HomeMy WebLinkAboutRES-2008-045 Application - Local Gov Commission for Financing Agreement Animal Shelter & Solid Waste Eq_.
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Resolution supporting an application to the Local Government Commission for
its approval of a financing agreement for Orange County
WHEREAS,
The Board of Commissioners of Orange County has previously determined to
undertake (a) the acquisition and construction of a new animal services building, and (b)
the acquisition of new landfill equipment.
The Board has previously determined 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.
THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
(a) The County makes a preliminary determination to finance project costs, as
follows:
Component
Estimated Maximum Amount
Animal services building $8,000,000
Landfill equipment 1,300,000
Total $9,300,000
The Board will determine the final amount to be financed by a later resolution.
The total amount financed may reflect adjustments to the amounts listed above and may
include amounts for financing costs.
(b) 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.
BE IT FURTHER RESOLVED that the Board of Commissioners makes the
following findings of fact:
(a) The proposed projects are necessary and appropriate for the County under
all the circumstances. The new animal services building is necessary to replace a facility
that will no longer be available to the County. The landfill equipment will enhance
service levels and the efficiency of landfill operations.
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(b) The proposed installment financing is preferable to a bond issue for the
same purposes. These projects are for discrete facilities and are for relatively small
amounts. These projects therefore lend themselves to installment financing and are not
particularly suitable for voter-approval bond financing.
(c) 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. All project costs to be financed will be based
on approved bids for the construction and acquisition.
(d) As confirmed to the Board at this meeting by the County's Finance Officer,
(i) the County's debt management procedures and policies are sound and in compliance
with law, and (ii) the County is not in default under any of its debt service obligations.
(e) The County expects that the amounts required to repay the amounts financed
for the projects will require the equivalent of a real property tax increase of
approximately .69 cents. Such an increase is appropriate under all the circumstances,
given the need for the projects. In addition, the County expects that debt service related
to the landfill equipment will be paid from the County's solid waste enterprise fund.
(f) 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 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.
(b) 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.
(c) 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 June 24,
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2008, and that a quorum was present and acting throughout such meeting. Such
resolution remains in full effect as of today.
Dated this day of 008.
[SEA ~oe~c Q,o -.
a a °'~ Donna Baker
,r ~ - ~~ ~ Clerk, Board of Commissioners
Orange County, North Carolina
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