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HomeMy WebLinkAboutRES-2000-044 Resolution Concerning High School Financing Plan Orange County Schools Resolution making certain findings of fact and authorizing staff work for a proposed installment financing for the planned new Orange County high school WHEREAS, Orange County has previously approved in principle a plan to finance a portion of the construction costs for a new high school for the Orange County school district through an installment financing contract, as authorized under Section 160A-20 of the North Carolina General Statutes; WHEREAS, the Board of Commissioners has been advised by the Finance Officer, after consultation with school board representatives, that installment financing for project construction costs will be required in an amount not to exceed $13,500,000, and the Board has determined now to proceed with the installment financing; WHEREAS, 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 necessary and appropriate for the County under all the circumstances. The County accepts the determination in this regard initially made by the Orange County School Board. 2. The proposed installment financing is preferable to a bond issue for the same purpose. The County's long-range capital improvement plan for the County schools has contemplated an installment financing for a portion of this project's cost for some time, and the Board has.determined that the capital improvement plan represents the preferred program for combining the various types of financing available to the County in light of the various capital needs facing the County. The Board notes that approximately one-half of the project's cost will be paid for from proceeds of general obligation bonds approved by the County's voters in November, 1997. The County has no ability to issue non-voted general obligation bonds for this project, and this project will produce no revenues that could be used to support a self-liquidating financing. 3. The sums to fall due under the contract are adequate and not excessive for the proposed purpose. The County will obtain competitive proposals for the financing now to be approved and the County expects that its high credit rating will enable it to obtain favorable financing terms. In addition, general obligation bond proceeds will pay approximately one-half of the project's construction cost, and County pay-as-you-go capital funds will pay additional project costs. 4. The Finance Officer has confirmed to the Board at this meeting that (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. There will be no increases in taxes necessary to meet debt obligations under the proposed financing arrangements. The County expects that interest rates to be payable by the County on the proposed financing, and the expected term of the financing, will allow the County to repay the financing within current resources. 6. The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose for which public ftinds of the County may be expended pursuant to the Constitution and laws of North Carolina. BE IT FURTHER RESOLVED that the Finance Officer and all other County officers and employees are authorized and directed to proceed with the installment financing contemplated by this resolution and as described to the Board, and to take all such further action as they may consider necessary or desirable in that connection. BE IT FURTHER RESOLVED that the Finance Officer is specifically authorized and directed to provide for the filing of an application to the LGC for its required approval of the project and the proposed financing arrangements. BE IT FURTHER RESOLVED that the Clerk to this Board is authorized and directed to provide for the publication of a notice of public hearing on the proposed financing, in the form and manner prescribed by statute, with the hearing to be held at the Board's meeting on June 29, 2444. BE IT FURTHER RESOLVED that this Board's determination to proceed with an installment financing shall be subject to the Board's further consideration in light of any public comment received at the public hearing.