HomeMy WebLinkAboutAgenda - 02-19-2008-4mORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 19, 2008
Action Agenda
Item No. -- YY1
SUBJECT: Adoption of Reimbursement Resolution for Animal Services Facility
DEPARTMENT: Budget PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. Reimbursement Donna Coffey, (919) 245-2151
Resolution - Animal
Services Facility Project
Attachment 2. Timeline for Debt
Issuance - Animal
Services Facility
PURPOSE: To adopt a reimbursement resolution authorizing the County to reimburse itself for
non-general obligation bond project expenditures incurred for the Animal Services Facility prior
to the actual issuance of debt.
BACKGROUND: The Board of County Commissioners has committed to constructing the
Animal Services Facility. Current plans include issuing non-general obligation debt, also known
as alternative financing, in spring 2008 to fund the project.
In accordance with Local Government Commission (LGC) policy, local governments must have
construction bids "in hand" prior to actually incurring debt. However, local governments must
expend monies in order to get the bids and in turn, reimburse themselves once they issue the
debt. As specified by the Internal Revenue Service, the tool that allows local governments to
proceed with planned projects and expend monies prior to issuing debt is a reimbursement
resolution. Reimbursement resolutions allow governing boards to state their intent to reimburse
themselves for capital project expenses with monies from debt financing.
The adoption of this resolution is consistent with past practices, for example with 1997 and 2001
voter approved bonds, when there have been occasions in which approved projects incurred
expenditures prior to the actual sale of the authorized financing. In these instances, the Board
adopted reimbursement resolutions that authorized the County to expend monies up front and
reimburse itself once the borrowed monies were in hand.
FINANCIAL IMPACT: As outlined in the attached resolution, the maximum amount of debt
planned for issuance this spring for the Animal Services Facility totals $8 million. It is important
to note that this amount reflects the maximum amount of money that the County would
anticipate borrowing this spring to complete the new facility in order to allow flexibility to the
Board in approving the project's final budget. The $8 million figure is consistent with the
amounts outlined in the Manager's Recommended 2008-18 Capital Investment Plan (CIP).
2
Staff plans to provide the Board with additional information regarding this project in the
upcoming months.
RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners
adopt the reimbursement resolution for the Animal Services Facility.
3
REIMBURSEMENT RESOLUTION -
ANIMAL SERVICES FACILITY PROJECT
WHEREAS, the Manager has described to the Board the desirability of
adopting a resolution, as provided under federal tax law, to facilitate the County's using
proceeds of tax-exempt financing to restore the County's funds when the County makes
capital expenditures prior to closing on the financing.
BE IT RESOLVED by the Board of Commissioners of Orange County,
North Carolina, as follows:
Section 1. The project is the acquisition, construction and equipping of a
new animal services facility.
Section 2. . The County intends to finance the project. The expected type
of financing (which is subject to change) is installment financing pursuant to Section
160A-20 of the General Statutes. The expected maximum amount of bonds or other
obligations to be issued or contracted for the project is $8,000,000.
Section 3. The County intends that funds that have been advanced, or
may be advanced, from the County's general fund for project costs will be reimbursed
from the financing proceeds.
Section 4. The County intends that the adoption of this resolution will be
a declaration of this County's official intent to reimburse project expenditures from
financing proceeds.
I certify that the foregoing resolution was duly adopted at a meeting of the
Board of Commissioners of Orange County, North Carolina, duly called and held on
February 19, 2008, and that a quorum was present and acting throughout such meeting.
Such resolution remains in full effect as of today.
Dated this day of February, 2008.
[SEAL]
Donna Baker
Clerk, Board of Commissioners
Orange County, North Carolina
4
Orange County Financing for Animal Services Facility - Schedule
County makes initial contact with LGC [Done]
Updating meeting with LGC staff [Done -1/16]
County Board: adopt reimbursement resolution BOCC meeting of 2/19
County Board receives initial CM-R price proposal
GMP for site work only BOCC meeting of 2/19
County Board considers final CM-R bids and
contracts BOCC meeting of 4/1
County sends out bank loan RFP 4/2
County Board: adopt findings resolution BOCC meeting of 4/15
Publish notice of County public hearing By 4/20
Bank proposals due back to the County By 4/21
County Board - hold public hearing; adopt
resolution approving financing 511
County's final application materials sent to LGC By 5/9
LGC approval 6/3
Closing 6/10 or thereafter
99164v2