HomeMy WebLinkAboutRES-1997-061 Resolution Authorizing the Filing of Application for Approval of a Financing Agreement authorized by NCGS 160A-20 ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION
FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY
NORTH CAROLINA GENERAL STATUTE 160A-20
WHEREAS, the County of Orange,North Carolina desires to renovate a building in at 501/503
West Franklin Street, Chapel Hill North Carolina, in which to locate its Skill Development Center;
and
WHEREAS, the County of Orange desires to finance this purchase in an amount not to exceed $
thousand by use of an installment contract authorized under North Carolina General Statute 160A,
Article 3, Section 20;and
WHEREAS, findings of fact by this governing body must be presented to enable the North Carolina
Local Government Commission to make its findings of fact set forth in North Carolina General
Statute 159, Article 8, SECTION 151 prior to approval of the proposed contract;
NOW,THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County.
North Carolina, meeting in regular session on the nineteenth day of November, 1997, make the
following findings of fact:
1. The proposed project is necessary or expedient because:
a. The facility will serve as a one stop information, assessment, referral and training center
for citizens seeking access to various services available to prepare them for,and help them find. a
job. There is no similar facility in the County.
b. The original purchase of the property was for the purpose stated and the renovations will
make the property ideal for the function it will provide. It's location on the Chapel Hill Transit and
the County's OPT bus routes will make accessibility by public transportation convenient.
c. The building is in immediate proximity to the highest concentration of unemployment
and poverty in all of Orange County;and
d. The renovation costs will be significantly less than the cost of new construction for a
similar facility; and
f. The renovation of the existing building will allow services to the citizens of the County
to be offered much sooner than if a new facility were to be built.
2. The proposed contract is preferable to a bond issue for the same purpose because:
a. The renovation to this property has been planned in the County Capital Improvements
Plan(CIP) using local funds to pay installments, and this method of contracting would be the most
expeditious manner in which to raise cash for the facility;
b. The not-to-exceed amount of$------------represented through this contract and
imperative for the renovation of this property cannot be prudently raised in total from currently
available appropriations.
3. The cost of financing under the proposed contract could be greater than the cost of
issuing general obligation bonds. However,this method of financing will increase the alternatives
available to Orange County to obtain the most cost effective,timely, and flexible means possible of
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funding this necessary project. Given Orange County's excellent credit standing, any differences in
the comparable costs between bond financing and installment purchase financing will be reasonable.
4. The sums to fall due under the contract are adequate and not excessive for the proposed
purpose because funding of the debt service thus created is already planned in Orange County's
long-term Capital Improvement Plan.
5. The County of Orange's debt management procedures and policies are good because the
County's existing and planned debt falls well within North Carolina's legal debt limitations for local
governments; furthermore, Orange County's excellent creditworthiness is well recognized by
investors and well established by the principal municipal bond rating agencies with bond ratings of
Aal (Moody's)and AA+(Standard and Poor's).
6. There will be no increase in ad valorem property taxes necessary to meet the sums to fall
due under the proposed contract. Debt will be retired through pay-as-you-go sales tax revenues
already identified in the County's CIP.
7. The County of Orange is not in default in any of is debt service obligations.
8. The Attorney for the County of Orange has rendered an opinion that the proposed
Projects are authorized by law and is a purpose for which public funds may be expended pursuant to
the Constitution and laws of North Carolina.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Finance Officer is hereby authorized
to act on behalf of the County of Orange in filing an application with the North Carolina Local
Government Commission for approval of these projects and the proposed financing contract and
other actions not inconsistent with this resolution.
This resolution is effective upon its adoption this the 19th day of November, 1997.
The motion to adopt this resolution was made by Commissioner , seconded by
Commissioner ,and passed by a vote of to
William L. Crowther,Chair
ATTEST:
Beverly A. Blythe, Clerk to the Board
This is to certify that this is a true and accurate copy of this resolution adopted by the Orange
County Board of Commissioners on the 19th day of November, 1997.
Beverly A. Blythe, Clerk to the Board Date