HomeMy WebLinkAboutRES-2010-079 Resolution Supporting an Application to the Local Government Commission for its approval of financing arrangements for the County - installment refinancings and certain equipment financing 1p ci,
Resolution supporting an application to the Local Government Commission
for its approval of financing arrangements for the County—
installment refinancings and certain equipment financing
WHEREAS--
Orange County has previously entered into a variety of installment financings
under the provisions of Section 160A-20 of the North Carolina General Statutes. The
County has determined that refinancing some of these previous financings could produce
significant debt service savings for the County.
In addition, the County has previously made a preliminary determination to
proceed with the acquisition and financing of certain equipment, including telephone
equipment and new property information management equipment. The County estimates
the cost of this equipment as approximately $2,000,000.
The North Carolina Local Government Commission must approve the County's
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 confirms its preliminary determination to proceed with the
equipment financing and determines to pursue the proposed refinancings. The Board will
make a final determination to proceed with this financing, and to approve financing terms
and conditions, by one or more subsequent resolutions.
BE IT FURTHER RESOLVED that the Board of Commissioners makes the
following findings of fact:
(1) The proposed financings are necessary and appropriate for the County
under all the circumstances. The refinancings will provide significant savings to the
County. The equipment will be 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.
As the financings that are proposed to be refinanced are all installment financings,
it is most appropriate to carry out the refinancing as an installment financing.
The County has no ability to issue general obligation bonds for equipment project
without referendum approval. It is cost-effective to combine this relatively small
equipment financing with the larger planned installment refinancing.
(3) The estimated sums to fall due under the proposed financing contract will
be adequate and not excessive for the proposed purpose. The County will closely review
proposed financing rates and debt service levels with the LGC.
(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 the equipment financing will have no material
effect on the County's tax rate. The refinancing will reduce the County's total debt
service obligations. The County believes that the tax rate impacts of the financing and
refinancing are reasonable under all the circumstances.
(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.
(7) The Board estimates that the maximum amount to be financed for the
equipment project will be $2,000,000. This amount is an estimate; the final amount to be
financed may be somewhat higher or lower than the estimate. The Board estimates that
the maximum amount to be financed to carry out the proposed refinancings will be
$101,600,000, although the actual amount of financing is likely to be lower. The County
may use financing proceeds to pay necessary or incidental costs of carrying out the
financing.
BE IT FURTHER RESOLVED, that the Finance Officer is authorized and
directed to take all appropriate steps toward the completion of the financing, including
completing an application to the LGC for its approval of the proposed financing; that 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;
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 October
19, 2010, and that a quorum was present and acting throughout such meeting. Such
re mains in full effect as of today.
day of October, 2010.
52
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Clerk, Board of Commissioners
Orange County,North Carolina