Loading...
HomeMy WebLinkAboutRES-2013-093 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the County 5 � RES-2013-093 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) This resolution takes effect immediately. Exhibit A—proposed projects Project Estimated Amount Description Culbreth Middle School Science Science Wing for Chapel Hill Wing $ 4,971,676 —Carrboro City Schools $ 130,000 Community Geothermal HVAC Projects Projects Roofing Projects $ 115,000 County Equipment, BOCC Initiatives, Firehouse Software and Information Technology $ 1,436,000 Central Permitting Software Whitted Building Renovations $ 1,700,000 BOCC Meeting Room Additional Channels for Existing Towers increase the Viper Radio System $ 500,000 Viper System capacity Communication System Improvements $ 709,062 Purchase of additional Viper Radios Vehicle Replacements $ 899,416 Vehicles Purchases ORANGE COUNTY BOARD OF COMMISSIONERS BARRY✓ACOBS,CHAIR POST OFFICE BOX 8181 1T 52 EARL MCKEE, VICE CHAIR MARK DOROsw 200 SOUTH CAMERON STREET ALICE M.GORDON BERNADETTEPEussIER HILLSBOROUGH, NORTH CAROLINA 27278 RENEE PRICE PENNY RICH CLERK'S CERTIFICATION NOW THEREFORE BE IT ORDAINED by the Board of Or nge Co ty Commissioners that this re lution is f effective upon approval. Upon motion of Cam. , second d by u4ym • /l c' , the foregoing resolution was adopted this the day of 2013. I, 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 , 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 day of 2013. � , ctLnunt Donna S. Ba r �,. Clerk to the Board r N5 g� SEA F A'a r t www.co.orange.nc.us Protecting and preserving—People, Resources, Quality of Life Orange County, North Carolina— You Count! (919)245-2130• FAX(919) 644-0246