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HomeMy WebLinkAboutRES-2015-019 Resolution supporting an application to the Local Government Commission for its approval of a financing agreement for the County P)qF - a1D6' 6-b RES-2015-019 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, and County staff has determined and advised the Board that refinancing all or a portion of two prior installment financings may provide savings to the County. The Board desires to finance the costs of these projects and to carry out the refinancing 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 $26,470,000 to pay capital costs of various public improvements and to carry out the refinancing. The proposed list of projects and improvements to be financed appears in Exhibit A. The two financings that are to be refinanced are a) a 2006 installment financing contract secured by Carrboro High School and b) a 2006 Certificates of Participation installment financing secured by Gravelly Hill Middle School. 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 $26,470,000. Some of the financing proceeds may provide reimbursement to the County for prior expenditures on project costs, some proceeds may be used to pay financing expenses, and some proceeds may be used to provide any appropriate reserves. 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. The proposed refinancings are necessary and appropriate for the County under all the circumstances because the refinancings will produce substantial debt service savings. (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 these projects. 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 financings. 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 purposes. 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 Interim 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 General Fund related debt service on the financing will be the equivalent of up to approximately 0.67 cents per $100 of valuation. Based on current resources and the retirement of some existing debt, no actual tax rate increase related to this financing will be necessary. (f) The County Attorney is of the opinion that the proposed projects are authorized by law and are for purposes 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 Interim Finance Officer is directed to take all appropriate steps toward the completion of the financing, including (i) completing an application to the LGC for its approval of the proposed financing, and (ii) soliciting one or more proposals from financial institutions to provide the financing. All prior actions of County representatives in this regard are regard are ratified. (b) This resolution takes effect immediately. I certify as follows: that the foregoing resolution was properly adopted at a meeting of the Board of Commissioners of Orange County, North Carolina; that this meeting was properly called and held on April 7, 2015; that a quorum was present and acting throughout this meeting; and that this resolution has not been modified or amended, and remains in full effect as of today. Dated this __L day of , 2015. sz Donna S. aker 17 Clerk, Board of Commissioners Ort 6 Cat Exhibit A– proposed projects Project description Est. Amount Financed Vehicle replacements $ 760,000 In-car camera replacements for Sheriff's office $ 520,000 Board of Elections equipment $ 700,000 Improvements to Cedar Grove Community Center $ 2,800,000 Southern Orange Campus—planning and improvements $ 400,000 HVAC projects at various County facilities $ 360,000 Roofing projects at various County facilities $ 180,000 Information technology (including central permitting $ 1,250,000 software) Communications systems improvements, including Sheriff's $ 125,000 department and EMS systems Soccer.com soccer center improvements $ 125,000 Lands Legacy acquisitions $ 2,400,000 Sportsplex—pool mezzanine $ 950,000 Improvements for Eubanks Road solid waste convenience $ 1,100,000 center Efland water and sewer improvements $ 4,600,000 Estimated total for new projects $ 16,270,000 Estimated total for refinancings $ 10,200,000 Estimated grand total $ 26,470,000