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Home My WebLink AboutAgenda - 01-18-1994 - V-B t i 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No V-8 ACTION AGENDA ITEM ABSTRACT Meeting Date: January 18, 1994 SUBJECT: County Financings for School Construction Under NCGS Section 160A-20 ----------------------------------r------------------------------------- DEPARTMENT County Manager PUBLIC HEARING YES NO x -------------------------------- ------------------------------- ATTACHMENT(S) INFORMATION CONTACT Resolution Rod Visser, ext 2300 Proposed Legislation TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 ---------------------------------------------------------------------- PURPOSE: To consider a resolution requesting that the Orange County legislative delegation introduce and support legislation authorizing Orange County to finance school construction under Section 160A-20 of the North Carolina General Statutes. BACKGROUND: On November 30, 1993, the Orange County Board of Commissioners, the Orange County Board of Education, and the Chapel Hill-Carrboro Board of Education met jointly to discuss options for financing elementary school space that may be needed. One outcome of the meeting was consensus among the three boards that the use of Certificates of Participation (COPS) is one appropriate method for pursuing the financing of school capital construction. Furthermore, the boards concurred that it would be appropriate to jointly adopt a resolution requesting that the members of the Orange County legislative delegation introduce and support local legislation in the 1994 Short Session of the General Assembly that would facilitate such financing by Orange County. A proposed resolution is included with this abstract, along with draft legislation (prepared by the County's bond counsel and reviewed by the County Attorney) that would authorize such financings. RECOMMENDATION: The Manager recommends that the Board adopt the resolution. 2 � ORANGE COUNTY BOARD OF COMMISSIONERS ORANGE COUNTY BOARD OF EDUCATION CHAPEL HILL-CARRBORO BOARD OF EDUCATION A RESOLUTION IN SUPPORT OF COUNTY FINANCINGS FOR SCHOOL CONSTRUCTION UNDER SECTION 16OA-20 WHEREAS, Section 160A-20 of the North Carolina General Statutes authorizes local governments to engage in "installment financings", whereby North Carolina counties, cities and certain other governmental units can borrow money on a non-recourse basis by securing their repayment obligations with a pledge (mortgage) of properties to be improved or financed with the financing proceeds; and WHEREAS, Section 160A-20 does not authorize such financings by Boards of Education; and WHEREAS, several North Carolina counties have obtained local legislation which enables those counties to undertake 160A-20 financings for school purposes on behalf of Boards of Education within those counties, and; WHEREAS, similar local legislation would authorize Orange County to own and construct school buildings and to equip school buildings constructed and would authorize the Boards of Education in Orange County to convey property to the County to enable the County to own, construct, and equip school buildings using 160A-20 financing; and WHEREAS, the Orange County Board of Commissioners, the Orange County Board of Education and the Chapel Hill-Carrboro Board of Education have determined that 160A-20 financing is one appropriate method for financing school building projects; NOW, THEREFORE the Orange County Board of Commissioners, the Orange County Board of Education, and the Chapel Hill- Carrboro Board of Education do hereby jointly request the legislative delegation representing Orange County to introduce and support the attached local legislation during the 1994 Short Session of the North Carolina General Assembly. This, the 18th day of January, 1994. -j HN il '94 09:58 BROWN & WOOD NY 3 AN ACT TO ALUM ORANGE COUNTY TO ACQUIRE AND OTHERNISIC MM AVAILAUS PROPERTY FOR USE By A. s+ nom AvuINTsmTI" UNIT WITHIN THE CaUM AND TO AKM ORANGE COUNTY'S AUTHORITY RELATING TO IMACT FEES. The General Assembly of North Carolina enacts: Section 1. A county may Acquire, by gift, grant, devisee, bequest, exchange, purchase, lease, or any other lawful method, the fee or any lesser interest in real or personal property for use by a school administrative unit within the county. In exercising the purer of eminent domain a county shall use the procedures of Chapter 40A. A county may also construct, equip, expand, improve, renovate, repair or otherwise make available property for use by a school administrative unit within the county and may lease., sell or otherwise dispose of such property to a school administrative unit for such price and upon such other terms as may be agreed upon by the county and such school administrative unit. A county shall uses its authority under this section only upon the request of the school administrative unit for which property is to be made available pursuant to this section and after a public hearing. Sec. 2. Notwithstanding the provisions of G.S. IISC-318 and 0.8.16"-274 to the contrary, a school administrative unit may lsa", sell or otherwise dispose of any of its property to the county in which the property is located for such price and upon such other terms ass nay be agreed upon by the school administrative unit and such county in connection with the construction, equipment, expansion, imprevwwnt, renovation or repair or otherwise making available for use by it of such property or sore part of such property. A school administrative unit may also acquire, by gift, grant,, devise, bequest, exchange, purchase, lease or any other lawful method, the fee or any lesser interest in real or personal property for use by it from the county in which it is located and contract for the construction, squipmant, expansion, improvement, renovation or repair or otherwise make available for use by it of such property or some part of such property upon such tomes ^a way be agreed, upon by it and such county. Sec. 3. G.S. MA-331(b) (2), and G.S. 153A-340(b) (2) are each amended to read: "(2) por purposes of this subsection, the teem capital isprove meents includes the a..,p ition of land for open space and greeenv eys, capital, improvements to public streets, schools, bridges, sidewalks* JAN 11 '94 09:58 BROWN & WOOD NY 4 bikeways, on and off street surface water drainage ditches, pipes, culverts, other drainage facilities, water and sewer facilities and public recreation facilities and the term costs includes obligations incurred or assumed � for payments with respect to borrowed money and for payments under leases which are required to be capitalized in accordance with generally accepted accounting principles and under installment sale contracts in connection with such capital improvements.* Sac. 4. Sections 1 and 2 of this act shall apply only to Or nge County. Section 3 of this act shall apply only to orange County and only within the planning jurisdiction of orange County; provided, however, that any portion of an orange County ordinance that contains a system of impact fees to provide for capital improvements to public schools, within Orange County applies everywhere in orange County, including within the corporate limits and the extraterritorial planning jurisdiction of any city, town., or xemicipal corporation within orange County, and any such ordinance may provide that the tern costs includes obligations incurred or assumed for payments with respect to borrowed money and for payments under leases which are required to be capitalized in a with generally accepted accounting principles and under installment sale contracts in connection with such capital improvements. Sec. S. Sections 1 and 2 of this act shall be d ensd to provide an additional and alternative method for the doing of things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any -powewrs now existing. References in this act to specific sections of the General Statutes are intended to be references to such sections as they may be amended from time to time by the General Assembly. This act shall be liberally construed to effectuate its purposes. Insofar as the provisions of this act are inconsistent with the provisions of any general ],stars, this act shall be Controlling. If any provision of this act or the application thereof to any parson or aireumletanoe is held invalid, such invalidity shall not affect other provisions or applications of the act which can be 2 JAN 11 '94 09:59 BROWN & WOOD NY 5 9iva0 stfect vithout the invalid :provision or application, and to this and the provisions of this act are severable. See. G. This act is affective upon its ratification. 3