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HomeMy WebLinkAboutRES-2013-077 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the County RES-2013-077 s � . 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 $10,500,000 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 $10,500,000. 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 $100 of valuation. Given this low amount and based on the estimated interest rates to be payable and the proposed financing term, the County expects to be able to repay the financing within current resources, and no actual tax rate increase related to this financing will be necessary. (f) The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose for which public funds of the County may be expended pursuant to the Constitution and laws of North Carolina. BE IT FURTHER RESOLVED as follows: (a) The County intends that the adoption of this resolution will be a declaration of the County's official intent to reimburse project expenditures from financing proceeds. The County intends that funds that have been advanced for project costs, or which may be so advanced, from the County's general fund, or any other County fund, may be reimbursed from the financing proceeds. (b) The Board will hold a public hearing on this matter. The Interim County Manager is authorized to set the date and time of the hearing, and the Clerk to this Board is directed to publish a notice of such public hearing in the manner provided for by law. (c) The Finance Officer is directed to take all appropriate steps toward the completion of the financing, including (i) completing an application to the LGC for its approval of the proposed financing, and (ii) soliciting one or more proposals from financial institutions to provide the financing. All prior actions of County representatives in this regard are regard are ratified. (d) This resolution takes effect immediately. Exhibit A— proposed protects Project Estimated Amount ($) Culbreth Middle School Science Wing 4,971,676 addition— construction and equipping HVAC projects 130,000 Roofing projects 115,000 Information technology (including firehouse 1,436,000 software and central permitting software Whitted Building—renovation costs and 1,700,000 recapture of planning costs VIPER radio system 500,000 Communication system improvements 709,062 Vehicle replacements 899,416 TOTAL 10,461,154 BARRYJACOBS,CHAIR ORANGE COUNTY BOARD OF COMMISSIONERS EARKDORO, lw/CECHA/R POST OFFICE BOX 8181 17 52 ALICE MARK DOROS/N BERNAD.G FELL 200 SOUTH CAMERON STREET BERNADE7TE PEL/SS/ER RENEEPRICE HILLSBOROUGH, NORTH CAROLINA 27278 PENNY R/CH b a�t4 iEar°��� CLERK'S CERTIFICATION NOW THEREFORE BE IT ORDAINED by the Board of Ora ge Cou Commissioners that this solution is qffective upon approval. Upon motion of seconded by 62e , the foregoing resolution was adopted this the 15 day of October 2013. I, Donna S. Baker, Clerk to the Board of Commissioners for the County of Orange, 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 October 15, 2013, as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and the seal of said County, the 16th day of October 2013. Donna S. Baker, CMC \ Clerk to the Board n 52 SEAL KvprthaC�``� www.co.oran,qe.nc.0 S Protecting and preserving—People, Resources, Quality of Life Orange County, North Carolina— You Count! (919)245-2130• FAX(9 19)644-0246