HomeMy WebLinkAboutAgenda - 04-23-2013 - 7c 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 23, 2013
Action Agenda
Item No. 7-c
SUBJECT: Preliminary Information and Approval to Finance Various Capital Investment
Plan Projects and County Equipment
DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No
Services
ATTACHMENT(S):
1. Listing of Projects to be Financed INFORMATION CONTACTS:
2. Preliminary Financing Schedule
3. Preliminary Financing Calendar Clarence Grier, 919-245-2453
4. Resolution Providing Preliminary Robert Jessup, 919-933-9891
Approval of Installment Financing
PURPOSE: To receive preliminary information and approve a resolution authorizing the
scheduling of a public hearing for the installment financing for capital investment projects and
equipment previously authorized by the Board.
BACKGROUND: As part of the FY2012-17 Capital Investment Plan, several projects were
approved for equipment financing. These projects included the following (see Attachment 1 for
additional information):
Debt Financing in FY 2012-13
County Projects Amount
Southern HSC (Future Planning) $ 300,000
HVAC Projects $ 1,553,201
Roofing Projects $ 165,000
Information Technology $ 702,500
Whitted Building $ 295,000
VIPER Radio System $ 543,750
Communications System Improvements $ 164,000
Twin Creeks Park- Phase II $ 600,000
Total $ 4,323,451
Debt Financing in FY 2012-13
Water and Sewer Projects Amount
Buckhorn EDD Phase 2 (Article 46 Proceeds) $ 4,256,046
$ 4,256,046
2
Additional Debt Financing Needed in FY 2012-13
Project Amount
Southern Human Services Center(10027) $ 280,000
Information Technology(30007) $ 500,000
$ 780,000
Vehicle Replacement Fund
Project Amount
Vehicle Replacements $ 640,503
$ 640,503
Grand Total $ 10,000,000
The preliminary schedule for the financing is attached (Attachment 2). Staff will be receiving
bids from financial institutions to secure the financing and anticipates receiving $10 million in
financing for twenty (20) years at an interest rate of 2.30 percent, which will result in an average
annual debt service cost of$742,000.
FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be
a financial impact in proceeding with the financing for projects. A preliminary estimate of
maximum debt service applicable to the school and County projects financing would require
$683,000 in fiscal year 2013-14 with the highest debt service payment of $743,000 falling in
fiscal years 2015-2018. The tax rate equivalent for the highest debt service payment is
approximately .4054 cents.
RECOMMENDATION(S): The Manager recommends the Board receive the preliminary
information, provide feedback to staff, and approve a resolution authorizing the scheduling of a
public hearing for the installment financing for capital investment projects and equipment as
noted above and in the attachments and previously authorized by the Board .
Orange County 3
Listing of Projects To Financed for FY 2012-2013 Attachment 1
Debt Financing in FY 2012-13
County Projects Amount Description
Expansion Master Plan and
Southern HSC(Future Planning) $ 300,000 Preliminary Design Work and Planning
HVAC Projects $ 1,553,201 Community Geothermal Projects
Jail,Justiice Facility,Asset Management Services
Roofing Projects $ 165,000 North Administrative Building
Library Management System Software(ILS), Equipment,
Information Technology $ 702,500 BOCC initiatives
Whitted Building $ 295,000 Preliminary Design Work
Additional Channels for Existing Towers to increase the
VIPER Radio System $ 543,750 Viper System capacity
Communications System Improvements $ 164,000 Purchase of additional Viper Radios
Twin Creeks Park-Phase II $ 600,000 Construction of a main entry road
Total $ 4,323,451
Debt Financing in FY 2012-13
Water and Sewer Projects Amount
To place Water and Sewer infrastructure in the Buckhorn
Buckhorn EDD Phase 2(Article 46 Proceeds) $ 4,256,046 -Mebane Economic Development District
$ 4,256,046
Additional Debt Financing Needed in FY 2012-13
Project Amount
Southern Human Services Center(10027) $ 280,000 Health Clinic and DSS Rennovations
Information Technology(30007) $ 500,000 Desktop, Laptop and Server Replacements
$ 780,000
Vehicle Replacement Fund
Project Amount
Vehicle Replacements $ 640,503 Vehicle Purcahses approved in the FY2013 Budget
$ 640,503
Grand Total $ 10,000,000
Orange County, NC Attachment 2 4
Series 2013 Installment Purchase Contract
Preliminary Financing Schedule (4/2/201 3 )ra t)
Mar-13 Apr-13 May-13
Su Mo Tu We Th Fr Sa Su Mo Tu We Th, Fr Sa Su Mo Tu We Th Fr Sa
1 2 1 2 3 4 5 6 1 2 3 4
3 4 5 6 7 8 9 7 8 9 10 11 12 13 5 6 7 8 9 10 11
10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 17 18
17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25
24/31 25 26 27 28 29 30 28 29 30 26 27 28 29 30 31
Preliminary Schedule
Date Task Responsibility
Week of April 1st RFP Distributed County/SH/Day
No Later Than April 25t1 Publish Notice of Public Hearing County/SH
Week of April 29t1 Submit application to the LGC County /Day
May 6t1 RFP Bids Due Day
Week of May 6th Conference call to discuss bank proposals and determine County/Day/SH
recommended bidder
May 7th County Board Meeting County/SH/Day
Hold Public Hearing
Adopt a Findings Resolution
Mid—Late May Finalize Documents SH/Bank
June 4th County Board Meeting County/SH/Day
Adopt a Resolution approving financing terms and
documents
LGC Meeting LGC
LGC Considers approval of the refinancing
No later than June 13th Close on Bond Working Group
Working Group
Role Entity Defined
Issuer Orange County,NC "County"
Local Government Commission "LGC"
Bond Counsel Sanford Holshouser LLP "SH"
Bank TBD `Bank"
Financial Advisor Davenport&Company LLC
DAVENPORT&COMPANY LLC 1
Attachment 3
Orange County, NC
Limited Obligation Bonds, Series 2013
Preliminary, Rate Indications as of March 20, 2013
5
Term
15 Years
Term
15 Years
Term
20 Years
Par Amount
$ 11,075,000
Par Amount
$ 9,925,000
Par Amount
$ 9,900,000
Total Debt Service
13,101,365
Total Debt Service
13,259,517
Total Debt Service
14,606,418
Project Fund Deposit
11,000,000
Project Fund Deposit
11,000,000
Project Fund Deposit
11,000,000
Issuance Costs
75,000
Issuance Costs
175,000
Issuance Costs
175,000
Underwriter's Discount
743,000
Underwriter's Discount
49,625
Underwriter's Discount
49,500
Total Cost of Issuance
75,000
Total Cost of Issuance
224,625
Total Cost of Issuance
224,500
TIC
2.30%
TIC
2.39%
TIC
2.99%
AIC
2.40%
AIC
2.62%
AIC
3.18%
2014
$ 683,000
2.300% $
234,205 $
917,205
2014
615,000
2.00%
335,367.36
950,367.36
2014
455,000
2.00%
364,467.78
819,467.78
2015
743,000
2.300%
239,016
982,016
2015
665,000
2.00%
352,450.00
1,017,450.00
2015
500,000
2.00%
387,300.00
887,300.00
2016
743,000
2.300%
221,927
964,927
2016
665,000
3.00%
339,150.00
1,004,150.00
2016
500,000
3.00%
377,300.00
877,300.00
2017
743,000
2.300%
204,838
947,838
2017
665,000
3.00%
319,200.00
984,200.00
2017
500,000
3.00%
362,300.00
862,300.00
2018
743,000
2.300%
187,749
930,749
2018
665,000
3.00%
299,250.00
964,250.00
2018
500,000
3.00%
347,300.00
847,300.00
2019
742,000
2.300%
170,660
912,660
2019
665,000
3.00%
279,300.00
944,300.00
2019
500,000
3.00%
332,300.00
832,300.00
2020
742,000
2.300%
153,594
895,594
2020
665,000
3.00%
259,350.00
924,350.00
2020
500,000
3.00%
317,300.00
817,300.00
2021
742,000
2.300%
136,528
878,528
2021
665,000
3.00%
239,400.00
904,400.00
2021
500,000
3.00%
302,300.00
802,300.00
2022
742,000
2.300%
119,462
861,462
2022
665,000
4.00%
219,450.00
884,450.00
2022
500,000
4.00%
287,300.00
787,300.00
2023
742,000
2.300%
102,396
844,396
2023
665,000
4.00%
192,850.00
857,850.00
2023
495,000
4.00%
267,300.00
762,300.00
2024
742,000
2.300%
85,330
827,330
2024
665,000
5.00%
166,250.00
831,250.00
2024
495,000
5.00%
247,500.00
742,500.00
2025
742,000
2.300%
68,264
810,264
2025
665,000
5.00%
133,000.00
798,000.00
2025
495,000
5.00%
222,750.00
717,750.00
2026
742,000
2.300%
51,198
793,198
2026
665,000
5.00%
99,750.00
764,750.00
2026
495,000
5.00%
198,000.00
693,000.00
2027
742,000
2.300%
34,132
776,132
2027
665,000
5.00%
66,500.00
731,500.00
2027
495,000
5.00%
173,250.00
668,250.00
2028
742,000
2.300%
17,066
759,066
2028
665,000
5.00%
33,250.00
698,250.00
2028
495,000
5.00%
148,500.00
643,500.00
2029
2029
2029
495,000
5.00%
123,750.00
618,750.00
2030
2030
2030
495,000
5.00%
99,000.00
594,000.00
2031
2031
2031
495,000
5.00%
74,250.00
569,250.00
2032
2032
2032
495,000
5.00%
49,500.00
544,500.00
2033
2033
2033
495,000
5.00%
24,750.00
519,750.00
Preliminary: Subject to Change
Davenport & Company LLC 3/20/2013
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Version 06/01/12 MB TC
7
RES-2013-032 Attachment 4
Resolution Providing Preliminary
Approval for Installment Financing
WHEREAS:
The Board has determined to pursue the financing of various public improvements,
including utility improvements in the Buckhorn Economic Development District, vehicle
replacements, and roof, information technology and HVAC improvements.
BE IT RESOLVED by the Board of Commissioners of Orange County, North
Carolina, as follows:
1. Approval for installment financing -- The Board makes a preliminary
determination to proceed with financing approximately $10 million for the approved projects.
The financing will take the form of an installment financing, as provided for under Section
160A-20 of the General Statutes. The Board will make a final determination to proceed with
the financing, and to approve financing terms, by one or more subsequent Board actions.
2. Staff to proceed with issue — The County Manager, the Finance Officer and all
other County officers are directed to take all proper steps to proceed with the financing,
including proceeding with an application to the North Carolina Local Government Commission
for its required approval of the financing and soliciting financing proposals from financial
institutions. The Board appoints the Finance Officer as the County's authorized representative
with respect to the LGC application process.
3. Call for public hearing-- The County Manager, in collaboration with the
Clerk to this Board, is directed to provide for the scheduling of the required public hearing for
this financing, and to provide for notice of the hearing to be given in accordance with law.
4. Miscellaneous provisions -- All County officers and employees are authorized to
take all such further action as they may consider necessary or desirable in connection with the
furtherance of the purposes of this resolution. All such prior actions of County officers and
employees are ratified. All other resolutions, or parts thereof, in conflict with this resolution are
repealed, to the extent of the conflict. This resolution takes effect immediately.
* * * * * * *
I certify as follows: that the foregoing resolution was properly adopted at a meeting of the
Board of Commissioners of Orange County, North Carolina; that this meeting was properly
called and held on ; that a quorum was present and acting throughout
the meeting; and that this resolution has not been modified or amended, and remains in full effect
as of today.
Dated this day of , 2013.
[SEAL]
Clerk, Board of Commissioners
Orange County, North Carolina