HomeMy WebLinkAboutRES-2013-040 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the County 5. 7- t3
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SARRYJACOBS,CHAIR ORANGE COUNTY BOARD OF COMMISSIONERS
EARL WKEE, Vice CHAIR POST OFFICE Box 8181
MARK DoRosw
ALICE M.GORDON 200 SOUTH CAMERON STREET
BERNADE-ME FELISSIER HILLSBOROUGH, NORTH CAROLINA 27278
RENEE PRICE
FENNYRIcH I'tb 4faixo
CLERK'S CERTIFICATION
NOW THEREFORE BE IT ORDAINED by the Board of Orange Onunty ommissioners that this
resolution is effecZfiveWpon approval. Upon motion of I k"_, seconded by
LA44U4�'�1' I foregoing resolution was adopted this the _:I 6y of
2013.
1, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, North Carolina,
DO HEREBY CERTIFY t the foregoing is a true copy of so much of the proceedings of said Board
at a meeting held on M KA,,( -1 - , 2013 as relates in any way to the adoption of the foregoing
and that said proceedings are rpcorded in Minute Book No. of the minutes of said Board.
WITNESS my hand and the seal of said County, the day of 2013.
CO air., Donna S. BakeF
Clerk to the Board
52
SEAL
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vnw.co.orange.nc.us
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RES-2013-040
Resolution Supporting an Application to the Local Government Commission for
its Approval of a Financing Agreement for the County
WHEREAS--
The Board of Commissioners has previously determined to carry out the
acquisition and construction of various public improvements, as identified in the
County's capital improvement plan.
The Board desires to finance the costs of these projects by the use of an
installment financing, as authorized under Section 160A-20 of the North Carolina
General Statutes.
Under the guidelines of the North Carolina Local Government Commission, the
Board 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, that the County makes a preliminary determination to finance
approximately $10,000,000 to pay capital costs of various public improvements. The
proposed list of projects and improvements to be financed appears on Exhibit A.
The Board will determine the final amount to be financed by a later resolution.
The final amount financed may be slightly lower or slightly higher than $10,000,000.
Some of the financing proceeds may provide reimbursement to the County for prior
expenditures on project costs, and some proceeds may be used to pay financing costs.
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.
(b) The proposed installment financing is preferable to a bond issue for the
same purposes.
The County has no meaningful ability to issue non-voted general obligation bonds
for this project. These projects will not produce sufficient revenues to support a self-
liquidating financing. The County has in the past issued substantial amounts of voter-
approved bonds, and it is appropriate for the County to balance its capital finance
program between bonds and installment financing.
The County expects that in the current interest rate environment for municipal
securities there would be no material difference in interest rates between general
obligation bonds and installment financings for these projects.
(c) The estimated sums to fall due under the proposed financing contract are
adequate and not excessive for the proposed purpose. The County will closely review
proposed financing rates against market rates with guidance from the LGC and its
financial adviser. All amounts financed will reflect either approved contracts, previous
actual expenditures or professional estimates.
(d) As confirmed 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 estimates that the maximum tax rate impact of paying debt
service on the financing will be the equivalent of up to approximately 0.04 cents per $100
of valuation. Given this low amount and based on the estimated interest rates to be
payable and the proposed financing term, the County expects to be able to repay the
financing within current resources, and no actual tax rate increase related to this financing
will be necessary.
(f) 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 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) This resolution takes effect immediately.
Exhibit A—proposed proiects
Project Estimated 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, Justice Facility, Asset Management
Roofing Projects $165,000 Services, North Administrative Building
Library Management System Software
Information Technology $702,500 (ILS), Equipment, BOCC initiatives
Whiffed Building $295,000 Preliminary Design Work
Additional Channels for Existing Towers to
VIPER Radio_System $543,750 increase the Viper System capacity
Communications System
Improvements $164,000 Purchase of additional Viper Radios
Twin Creeks Park-Phase 11 $600,000 Construction of a main entry road
To place Water and Sewer infrastructure in
the Buckhorn -Mebane Economic
Buckhorn EDD Phase 2 $4,256,046 Development District
Southern Human Services
Center $280,000 Health Clinic and DSS Renovations
Information Technology $500,000 Desktop, Laptop and Server Replacements
Vehicle Replacements $640,503 Vehicle Purchases