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HomeMy WebLinkAboutRES-1995-049 Resolution Authorizing the Filing of an Application for Approval of a Financing Agreement Authorized by NCGS 160A-20 r _ _ 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 an addition to the Jail and the Courthouse in Hillsborough to address overcrowding in these facilities and to construct a building in Chapel Hill to be used as the Southern Human Services Center; and WHEREAS,the County of Orange desires to partially finance the Projects 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 second day of October, 1995,make the following findings of fact: 1. The proposed contract is necessary or expedient because: a. The population in the Orange County Jail significantly exceeds it stated capacity of 71 inmates daily and there is no practical or timely alternative to the construction of the Jail addition. The County has been notified of possible sanctions by the Prisoner Legal Services if overcrowding is left unaddressed; b. Further,the growth in the Criminal Justice System as evidenced by the higher population of inmates is echoed in the Courthouse facilities. The District Courtroom is rated by Fire Officials to have a capacity of 82 persons. Court dockets routinely show multiples of this number which are to appear in District Court,with the more and more frequent result being that the Fire Marshal closes the Court down until such time the crowds can be redistributed to an acceptable number; c. In an effort to bring the project within funds available,the Southern Human Services Center has gone through extensive scope modification. Due in large part to the active building market in the Triangle .area cost estimators for the project have indicated that the budget for this project is insufficient to construct even the lesser scope of work. To further reduce the scope of work would jeopardize the integrity and functionality of the project to an unacceptable level. 2. The proposed contract is preferable to a bond issue for the same purpose because: a. Construction of these facilities is urgently needed in order to eliminate the overcrowding situation as quickly as possible. This method of contracting would be the most expeditious manner in which to raise cash for the projects. Contractors have indicated that the Jai/Courthouse additions could be built within ten (10)months; b. The total project value is estimated at$7.6 million,of which$5.6 million is currently funded through various sources. The additional$2 million represented through this contract and imperative to the completion of these projects cannot be prudently raised from currently available appropriations, unappropriated fund balances,or non-voted bonds. 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 these necessary projects. 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 Aa 1 (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. Payments due under the proposed contract will be financed by future revenues derived through holding inmates for the Federal Marshal's office and pay-as-you-go sales tax revenues. 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 2nd day of October, 1995. The motion to adopt this resolution was made by Commissioner Gordon ,seconded by Commissioner Halkiotis ,and passed by a vote of 5 to 0 ( Al A",p 0 - McKes Carey,Chair ATTEST: a7 ,elf� �Z a& — Beverly A. B e,Clerk to theBoard 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 2nd day of October, 1995. A"', _-,� /�;) -6JP,_ /D-3- 7s- Beverly A. B e,Clerk to th oard Date