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HomeMy WebLinkAboutRES-2006-071 Resolution for 2006 Financing Related to Carrboro High School <0:) 3 2006 Orange County financing for Carrboro High School -- Resolution supporting an application to the Local Government Commission for its approval of a financing agreement, and taking other appropriate action WHEREAS-- Orange County has previously undertaken to finance the acquisition and construction of a new high school for the Chapel Hill — Carrboro school district, to be known as Carrboro High School, and has established a financing plan that combines pay- as-you-go funding, general obligation bonds and installment financing. The County Commissioners now desire to continue the financing process for the high school by providing tentative approval for approximately $9,000,000 in financing for the project 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 (the "LGC"), 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 for the project. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County,,North Carolina, makes the following findings of fact: 1. The proposed project is appropriate for the County under all the circumstances. The project has been considered in detail by the Board on multiple occasions and is appropriate to serve the school population in the C — Carrboro district. 2. The proposed installment financing of approximately $9,000,000 is preferable to a bond issue for the same purpose. It is appropriate for the County to balance its capital finance program between bonds and installment financing, and the County has already applied some general obligation bond funds and other resources to this project. This project is also suitable for installment financing because the financing is for a single real property asset, and this financing can later be combined with a larger installment financing the County has planned. 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 i market rates with guidance from the LGC. The project is under construction pursuant to a construction budget previously evaluated by the Board. 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 expects that any tax increase that may be attributable to the current proposed financing will be minimal and will.in any event be appropriate under all ' the circumstances, given the importance of the project. 6. The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose for which public funds of the County may be expended pursuant to the Constitution and laws'of North Carolina. BE IT FURTHER RESOLVED by the Board, as follows: (a) The County's Finance Officer is authorized and directed to file an application with the LGC for its approval of the project and the proposed financing arrangements and to take all necessary and appropriate action related to the LGC approval process. (b) The Finance Officer is authorized and directed to solicit proposals from financial institutions to provide the financing contemplated by this resolution and to make a recommendation to the Board of the proposal that he determines to be in the County's overall best interests. (c) 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, or that may be advanced, from the County's general fund, or any other County fund, for project costs will be reimbursed from the financing proceeds. (d) A public hearing on this matter will be held at the Board's meeting of October 3, 2006. The Manager is authorized and directed to set the time of the hearing, and the Clerk to this Board is authorized and directed to publish a notice of such public hearing in the form and manner provided for by law. (e) This resolution takes effect immediately. 5 Orange County - Carrboro FUghTemporary Financing - Schedule County staff provides update As soon as possible report to LGC after 8/31 BOCC work session II County Board adopts preliminary BOCC meeting of 9/12 findings resolution; formally calls for public hearing County sends out bank loan RFP By 9/15 Publish notice of County public By 9/21 hearing Bank proposals due back to the By 9/28 County County Board holds public BOCC meeting of 10/3 hearing; adopts resolution approving financing School Board approves financing School Board meeting of 10/5 and property transfer County sends application By 10/6 materials to LGC LGC approval 11/7-8 First available closing date 11115 Orange County, North Carolina -- Notice of Public Hearing -- Financing for Carrboro High School The Board of Commissioners of Orange County, North Carolina, will hold a public hearing on Tuesday, October 3, 2006, at 7:30 p.m. (or as soon thereafter.as the matter may be heard).' The purpose of the hearing is to take public comment concerning a proposed financing contract, under which the County would borrow approximately $9,000,000 to funds for the acquisition and construction of Carrboro High School. The County may also use financing proceeds to provide required reserves and pay financing costs. The hearing will be held in the F. Gordon Battle Courtroom, Orange County Courthouse, 106 East Margaret Lane, Hillsborough, North Carolina. The proposed financing would be secured by a lien on the high school (and its associated land) and the County's promise to repay the financing, but there would be no recourse against the County or its property (other than the pledged facility and the associated land) if there were a default on the financing. As part of the financing plan, the Chapel Hill - Carrboro Board of Education will transfer the school property to the County. All interested persons will be heard. The County's plans are subject to change based on the comments received at the public hearing and the Board's subsequent discussion and consideration. The County's entering into financing is subject to obtaining approval from the North Carolina Local Government Commission. Persons wishing to make written comments in advance of the hearing or wishing more information concerning the subject of the hearing may contact Kenneth T. Chavious, Finance Officer, Orange County., Post Office Box 8181, Hillsborough, NC 27278 (telephone 919/245-2453)..