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HomeMy WebLinkAboutApplication for Approval of Installment Purchase or Lease Contract STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER STATE AND LOCAL GOVERNMENT FINANCE DIVISION AND THE LOCAL GOVERN MEN T COM M I SSI ON Mai IingAddress: 325 North Salisbury Street Raleigh, North Carolina 27603-1385 Federal Express & Courier: 4505 Fair Meadow Lane, Suite 102 Raleigh, North Carolina 27607-6449 Telephone: (919) 807-2350 Fax: (919) 807-2377 APPLICATION FOR APPROVAL OF INSTALLMENT PURCHASE OR LEASE CONTRACT Rev. 1-2004 APPLICATION DUE DATE The Local Government Commission (the "LGC") meets the first Tuesday of each month, unless otherwise announced, to conduct its business, including the approval of applications of units of government to incur debt. Generally, to allow adequate review of applications, the staff of the LGC (the "staff") requires that applications be received no later than twenty-eight days prior to the date of the LGC meeting at which the unit wants its application to be considered. However, in more complex transactions the staff may require earlier submission. Although this application form is available to interested parties by internet access; the project and the related proposed financing should be discussed with the staff prior to submission of an application. Before the application is accepted for submission tothe LGC a preliminary conference may be required (G.S. 159-149). STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division and the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 APPLICATION FOR APPROVAL OF INSTALLMENT PURCHASE OR LEASE CONTRACTS CHECK ONE: ❑ G. S. 160A-19 x G. S. 160A-20 ❑ G. S. 153A-165 1. Unit _Orange County Population 131,123 Date April 30, 2013 2. Project Description various capital investment projects and equipment _(see attached) 3. Necessity _ The projects to be financed may include vehicle replacements, information technology upgrades and replacements, water and sewer projects in the Buckhorn-Mebane Economic Development District, HVAC improvement and roof replacements for various County buildings, various communication systems upgrades and replacements, Twin Creeks park improvements, improvements to the Southern Human Services Center and planning for future improvements to the Southern Human Services Center and the Whitted Building in Hillsborough. The County may also use financing proceeds to provide required reserves and to pay financing costs. 4. Principal Amount to be Financed ................................................................... $10,000,000 5. Interest to be paid during life of contract....................................................... $2,000,000 6. Amount due throughout life of contract ......................................................... $12,000,000 (i.e., amount of periodic payment times number of payments. Should also be the total of 4 + 5 above.) 7. Estimated increase in tax rate by reason of proposed financing $ .4054 If other funding sources are anticipated, explain in one of the following forms: ❑ LGC-108C Revenue Projection for Water and Sewer ❑ LGC-108D Revenue Project for Other Enterprises ❑ LGC-108E Repayment Plan for Non-Enterprise Purposes 8. Term of contract including options to renew (if any)..................................... 15 years 9. Basis of design and estimated cost of project (engineer) $10,000,000 Date construction bids will be opened various 10. Capital budget based on estimates as of ........................................................ Estimated Cost Funding Sources Construction Cost ..................... $10,000,000 Loan......................................... $10,000,000 Engineer or Arch. Fees............. Grants (indicate source) Landand Rt.-of-way................. ................................................. Special Counsel Fees................ ................................................. Other Legal/Fiscal Cost............ ................................................. Administrative Cost ................. ................................................. Capitalized Interest.................. ................................................. Contingency............................... Available Cash ........................ ................................................... Other ....................................... Total ..................... $10,000,000 Total................. $10,000,000 11. The attached are furnished in support of this application: X a. Certified copy of governing body resolution making necessary findings and authorizing the contract. ❑ b. Publisher's Affidavit of the Notice of Hearing. ❑ c. Certified copy of minutes of hearing. • d. Certified net debt statement. • e. Certified fiscal information by finance officer. ❑ f. Revenue projections on repayment plan, Form 108C, 108D, or 108E. ❑ g. Engineer's or architect's report establishing feasibility, if applicable. ❑ h. Proposed financing contract. ❑ i. Completed I RS form 8038-G (2 copies) (To be provided at loan closing). ❑ j. Unit Attorney's Opinion. ❑ k. Fee Arrangement Letters: []Special Counsel ❑ Banker/Underwriter ❑ 1. Independent appraiser's report if applicable. ❑ m. Bid specifications and summary of competitive bids from contractors. ❑ n. Bid specifications and summary of competitive bids from banks and other financial institutions. ❑ o. Required licenses and permits. ❑ p. Evidence that plans and specs have been approved by appropriate State agencies. ❑ q. Other: Specify ❑ r. Engineer's/Architect's engagement letter (fee arrangement)and a copy of proposed contract ❑ s. Application fee for installment/lease purchase agreement contract. Attach check for appropriate amount. x x $500 for private placement. ❑ $5,000 for pu bl i c offeri ng. 12. Current audited financial statements have been received by Fiscal Management. Audit Reports are due October 31 each year. For units with a calendar year or fiscal year not ending on June 30, audited financial statements should be received within four months of year-end. Yes x No ❑ 13. Unit's Attorney_John Roberts Telephone_919-245-2318_Fax_919-644-3360_ Address 200 S. Cameron Street P.O. Box 8181, Hillsborough, NC_Zip_27278 14. Financing contract/agreement with _Branch Banking & Trust (BB&T) 200 West Second Street, Winston-Salem, NC 27101 Contact Person Allison Peeler Telephone 336-376-0254 Fax_336-376-0225 15. Consulting Firm (Architect or Engineer) Contact Person Title Telephone Fax 16. Unit's Authorized Agent_Clarence G. Grier Title—Financial Services Di rector_Telephone_919-245-2453_Fax_919-644-3324 Address 200 S. Cameron Street P.O. Box 8181—Hillsborough, N C_Zi p 27278 This application and supporting documents are deemed to be true and accurate to the best of my knowledge and belief. Signature of Authorized Agent Date (As Designated by Board) L G C-108A STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division and the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 SELECTED FISCAL INFORMATION ASCERTIFIED BY FINANCE OFFICER Unit Orange County 1. Ad Valorem Tax (current fiscal year): Appraised Value $16,014,391,296 Tax Rate —General Fund $.858 Total Levy 134,958,031_ —Other funds Uncollected at _3-31-13_ 3,470,105_ —Total $.858 Percentage Collected 97.43 % 2. For the past 5 fiscal years, has there been a delay in payment or non-payment of matured bonds and coupons when presented to the unit's fiscal agent? —No_ (Yes; No). If yes, explain circumstances on separate statement. 3. Information relating tocompliancewith Local Government Budget and Fiscal Control Act: (If answer to any question in this item is No, furnish explanation.) A. Purchasing and Contracts Yes No (1) Are purchase orders issued for all commitments over a minimum amount? (2) Do all purchase orders include a preaudit certificate signed by the finance officer (or properly appointed deputy)? (3) Are all purchase orders posted to appropriate expenditure accounts as encumbrances? B. Other: (1) Do checks or drafts on an official depository bear on their face a preaudit certificate, of sufficient unencumbered appropriation signed by the finance officer (or properly appointed deputy)? (2) Are the finance officer, tax collector, and other employees (as required) properly bonded according to G.S. 159-29? (3) Did the budget provide for all deficits, if any, as shown in the audit report for the prior year? C. Please include a description of any material instance of misfeasance or malfeasance (within the last three years)which might affected the credit of the unit. _n/a (none) I certify the above is correct to the Finance Officer's Signature Date best of my knowledge LGC-108A(BACK) PAGE 2 D. Additional Loan and Grant procedures for a Capital Project Ordinances (1) Loans Pursuant to G.S. 159-26(b)(6), a capital project fund is required to account for all debt instrument proceeds used to finance capital projects. To facilitate budgetary and accounting control, it is required that a capital project ordinance, pursuant to G.S. 159-13.2, be adopted by the governing board authorizing all appropriations necessary for the completion of the project. Will the unit prepare and adopt a balanced capital project ordinance covering the life of the project? x YES ❑ NO (2) Grants To facilitate budgetary and accounting control, it is required that a grant project ordinance, pursuant to G.S. 159-13.2, with a corresponding capital project fund, be adopted by the governing board authorizing all appropriations necessary for the completion of the project. Will the unit prepare and adopt a balanced capital project ordinance covering the life of the prom ect? x YES ❑ NO LGC-108C STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division And the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 PROJECTION OF WATER AND SEWER NET REVENUES Unit Fund Complete only if the proposed financing is for water or sewer facilities. Where separate accounting funds are maintained for each system, one schedule may be completed for proposed water bonds and one for proposed sewer bonds. Water and sewer operations may be consolidated when either water or sewer financing or both are proposed. Use actual amounts on modified accrual basis of accounting (budgetary basis)from latest audit report. Fiscal Year Fiscal Year REVENUES 1.Actual Revenue for Estimated Increase or(Decrease) 1+2+3 Estimated Last Complete Fiscal Revenue for Fiscal Year Year After Completion of Project 2.Due to Normal Growth 3.Due to Expanded and Rate Changes System Operating Revenues: Customer charges Other revenue Total Non-operating Revenues: Interest Restricted sales tax Other Total Total Revenues EXPENDITURES 1.Actual Estimated Increase or(Decrease) 1+2+3 Estimated Expenditurefor Last Expenditurefor Complete Fiscal Year Fiscal Year After Completion of Project 2.Dueto Normal Growth 3.Due to Expanded and Rate Changes System Operating Expenditures: Administration Salaries Other Operations Salaries Total Expenditures Excess Revenues over Expenditures Page 2 LGC-108C(Back) Projection of water and sewer net revenues(continued) Actual Estimated Expenditures for Expenditures Last Complete First Fiscal Year Fiscal Year After Completion Other (Do not include depreciation): of Project Debt principal Interest Capital outlay Capital reserve Transfer to(from)other funds Other Total other Net Income(Loss) Does the Unit own and operate a Water System and a Sewer System?Yes No If"No",explain Number of Customers Current After Completion of Project Water Residential Commercial Sewer Residential Commercial Current After Completion Percentage of Project of Change Rate and Fee Structure Indicate monthly cost for an average residential customer: Average gallons per month(for residential customer): WATER Rate(Include minimum cost/thousand gallons,etc.)— Residential Average monthly bill within city limits Average monthly bill outside city limits SEWER Rate(Include minimum,etc.)—residential Average monthly bill within city limits Average monthly bill outside city limits TAP FEE POLICY IMPACT FEE POLICY LGC-108D STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division and the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 PROJECTION OF ENTERPRISE NET REVENUES Unit Date Complete only if proposed financing are for electric, gas, parking, hospital or other enterprise purposes. Use form LGC-108C when financing is proposed for water and sewer purposes. Use actual amounts on modified accrual basis of accounting (budgetary basis)from latest audit report. REVENUE -1- Estimated Increase or(Decrease) 1 +2+3 Actual Revenue for 2 3 Estimated Revenue (I ndicate nature) Last Complete for First Fiscal Year Due to Normal Due to Expanded Fiscal Year Growth and Rate System After Completion of Changes Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total revenues . . . . . . EXPENDITURES -1- Estimated Increase or(Decrease) 1 +2+3 Actual Revenue for 2 3 Estimated Revenue (I ndicate nature) Last Complete Due to Normal Due to Expanded for First Fiscal Year Fiscal Year Growth and Rate System After Completion of Changes Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total expenditures. . . Page 2 LGC-108D (Back) Projection of enterprise net revenues (continued) Actual Estimated Expenditures for Expenditures Last Complete First Fiscal Year Fiscal Year After Completion Other of Project —Debt principal — I nterest —Capital outlay —Capital reserve —Transfer to(from)other funds —Other Net Income (Loss) Rate Structure Current After Completion Percentage of Project of Change Average monthly bill per residential customer: Within city limits Outside city limits LGC-108E STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division and the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 REPAYMENT PLAN FOR NON-ENTERPRISE PROJECTS Complete if the proposed financing is for non-enterprise purposes. List below the available sources of repayment and the amounts available to service debt over a three-year period. Explain in detail and attach supporting schedules. AVAILABLE AMOUNT Available Sources Fiscal Year Fiscal Year Fiscal Year 2013_ _2014 _2015 General Fund revenues $ 180,000,000 $ 182,000,000 $ 184,000,000 Article 46 1/4 cents sales tax 3,000,000 3,250,000 3,500,000 Total Amount Available $ 183,000,000 $ 185,000,000 $ 187,000,000 Debt Service Amount $ 683,000 $ 743,000 $ 743,000 LGC-109 STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER State and Local Government Finance Division and the Local Government Commission 325 North Salisbury Street, Raleigh, North Carolina 27603-1385 STATEMENT OF DEBT For _Orange County , North Carolina To be filed with the application. The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding or refunding bonds. The debt described below should not include revenue bonds or special obligation bonds. A. Gross Debt 1. Outstanding debt evidenced by bonds: Purpose Amount Sch ool s $61,934,985 Public Facilities $11,088,785 Parks and Open Space $13,566,230 Total $86,590,000 2. The proposed financing, and bonds authorized by orders introduced but not yet adopted: Date I ntroduced Purpose Amount April 23,2013 facility & equipment $ 10,000,000 Total $10,000,000 3. Unissued bonds authorized by adopted orders: Date I ntroduced Purpose Amount November 6, 2001 Parks $5,500,000 November 6, 2001 Affordable Housing $1,400,000 $6,900,000 4. Outstanding debt not evidenced by bonds (lease-purchase agreements): Date Incurred Purpose Amount Various Schools $60,367,632 Various Public Facilities $43,457,967 Various Parks and Open Space $ 6,795,098 Various Equipment $ 4,257,370 Various Sportsplex $ 4,332,988 $119,211,055 Total Gross Debt (Sum of 1, 2, 3 and 4) $222.701.055 Page 2 LGC-109(Back) B. Deductions 1. Funding and refunding bonds authorized by orders intro- duced but not yet adopted ..................................................... $10,000,000 2. Funding and refunding bonds authorized but not issued ... 3. Amount held in sinking funds or otherwise for the pay- $ 6,900,000 ment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer $ purposes (to the extent deductible under Section 159-55[b] of the Local Government Bond Act), or two or more of these purposes........................................................................ 4. Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes, or any two or more of these purposes. .................................. $ 5. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible under Section 159-55[b] of The Local $ Government Bond Act). ......................................................... 6. Uncollected special assessments levied for local improvements for which gross debt (that is not otherwise deducted) was or is to be incurred, to the extent it will be $ applied, when collected, to the payment of such gross debt. ........................................................................................ 7. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted)was or is to be incurred, to the extent $ that the special assessments when collected, will be applied to the payment of any part of gross debt. ............... Total Deductions (Sum of 1 through 7) C. Net Debt being the difference between Total Gross Debt (A) $16,900,000 and Total Deductions (B)........................................................... $205,801,055 D. Assessed Value of property subject to taxation being the value from which the assessed value was last fixed for taxation as revealed by the County tax records and certified $16,014,391,296 by the County Tax Supervisor................................................... E. Percentage that Net Debt bears to the assessed value of property subject to taxation (C - D).......................................... 1.28 % I certify the above is correct to the Finance Officer's Signature Date best of my knowledge. STATE OF NORTH CAROLINA ) ss.. COUNTY OF_Orange ) Clarence G. Grier , being duly sworn, says that he is the Assistant County Manager of the County of Orange in the State of North Carolina; and that the foregoing statement is true and was made and subscribed by him. Finance Officer ``\``\11R141II rv[�I!11!7!C Sworn to and subscribed before me on � c , the day of the date of said statement r NOTARY -`' PUBLIC V= (Notary Public) %0 My commission expires the `C day of 20 STATE OF NORTH CAROLINA ) COUNTY OF ✓� - ) I, the undersigned_4261 ,�® -k_, of the 5 V,-f f'r of a c -- in the State of North Carolina, DO HEREBY CERTIFY that the ("-, i'z_ foregoing statement and accompanying affidavit were filed in my office on the _ day of , 20 Q IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County, this i ` - day of 24 20 _ "At F ® t� ° Clerk 17 52 sss 4 �l`tfj �AtID C. Submission of Proposal Two copies of you proposal must be received by a.m./p.m. on at the offices of , Finance Director, [City/County] [address]. You may also submit your proposal via facsimile transmission at Proposals must specify at a minimum the following information. 1. The term of the financing. 2. The interest rate. 3. The terms of repayment. Please attach a sample debt service schedule. 4. Proposed terms for optional prepayment. Please also state whether you would allow a prepayment without penalty from excess construction proceeds. 5. A list of all additional costs to be associated with this transaction, including origination or placement fees, escrow fees, counsel fees and expenses. State whether or not any of such fees or expenses will be capped. 6. A statement to the effect that the bank agrees to the contract specifications set forth in Part B of this Request for Proposal. 7. Proposed collateral to secure financing and the method for creating the lien or security interest in such collateral. 8. Bids should be based on gross funding of The Project (without consideration of investment earn i ngs). The [City/County] reserves the right to request additional information from the bidders and reserves the right to reject all proposals and to waive any irregularity or informality. Although the selection will be based substantially on lowest total financing cost (including both interest cost and upfront fees and expenses), the [City/County] reserves the right to select the bidder that best meet the needs of the[City/County]. If further information is needed or if you have any questions regarding this Request for Proposal, please contact Thank you in advance for your consideration of this proposal. Very truly yours, Finance Director ORANGE COUNTY BOARD OF COMMISSIONERS EAR MCKE , CHAIR V10E CHAlR EARL L MCKEE; POST OFFICE BOX 8 18 1 MARK 17 Ltc,E' ,GoieD 200 SOUTH CAMERON STREET AuCE M,GORnoN BERNA DE=PELISSIER HILLSBOROUGH, NORTH CAROLINA 27278 RENEE PRICE ` �4 PENNYHICH �rt� tacio CLERK'S CERTIFICATION NOW THEREFORE BE IT ORDAINED by the Board of Prange County C mmissioners that this resolution is effe tine upon approval. Upon motion on by .,,the foregoing resolution was adopted this the day of ,. 2013. f, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on x; , 2013 as relates in any way to the adoption of the foregoing and that said proceedings are r cor ed in Minute Book No. of the minutes of said Board. WITNESS my hand and the sea[ of said County, the day of , 2013. Donna k-119ke, Clerk to the Board S � 17 52 }4r'tl Cato www.co.orange.nc. and preserving—People, Resources, Quality of Life Orange County North Carolina— You Count! (919)245-2930• FAX(919)644-0246 5 RES-2013-040 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the Coun 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 fndings 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. (c) 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 terra, 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 f©Ilows: (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 reirnbursed from the financing proceeds. (b) This resolution takes effect immediately. Exhibit A-- proposed projects 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 $965,000 Services, North Administrative Building Library Management System Software Information Technology $702,500 (ILS), Equipment, BOCC initiatives Whitted 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