HomeMy WebLinkAboutRES-1996-046 Resolution Authorizing the Filing of Application for Approval of a Financing Agreement Authorized by NC General Statute 160A-20 1A-c
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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 construct a new elementary school in the
Chapel Hill-Carrboro City Schools district to address overcrowding at the elementary school level within
the district; and
WHEREAS,the County of Orange desires to finance the Project largely by the 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 15th day of October, 1996,make the following findings of
fact:
1. The proposed contract is necessary or expedient because the elementary student population in
the Chapel Hill-Carrboro City Schools is currently over the capacity of the district's existing elementary
school buildings and no practical or timely alternative to the construction of permanent additional
elementary school space is available. The student population in the district has increased rapidly in
recent years and is projected by the North Carolina Department of Public Instruction to continue growing
substantially for the foreseeable future.
2. The proposed contract is preferable to a bond issue for the same purpose because:
a. availability of the new elementary school is urgently needed in time for the
1999-2000 school year and the contracting method is the most expeditious method of raising cash
quickly to meet the planning,design, and construction timetable for a 1999-2000 school opening;
b. the cost of the elementary school,estimated at$14 million,cannot be prudently raised from
currently available appropriations,unappropriated fund balances,or non-voted bonds;
c. the North Carolina General Assembly adopted legislation during the 1994 Session intended
specifically to permit Orange County to pursue installment financing for an elementary school project
that has since been successfully constructed and opened,and any future projects that might become
necessary.
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 funding this
necessary project. Given Orange County's excellent credit standing,and its past success in obtaining
installment financing for the previous elementary school project that compared favorably with rates on
other available financing mechanisms,any difference 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.
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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&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. Payments due under the proposed contract will be financed by school
impact fees accrued and pay-as-you-go sales tax revenues.
7. The County of Orange is not in default in any of its debt service obligations.
8. The Attorney for the County of Orange has rendered an opinion that the proposed Project is
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 this Project and the proposed financing contract and other actions not
inconsistent with this resolution.
This resolution is effective upon its adoption this 15th day of October, 1996.
The motion to adopt this resolution was made by Commissioner Gordon seconded by Commissioner Willhoit
, and passed by a vote of 4 to 0 .
ATTEST-
Beverly A. BI he, Clerk to the B and
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 15th day of October, 1996.
Beverly a Blyt e,Clerk to the oard Date