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HomeMy WebLinkAboutRES-2016-020 Resolution support an application to the Local Government Commission for its approval of a County financing agreement Av 3-0a -o Lv 4 5a RES-2016-020 Resolution supporting an application to the Local Government Commission for its approval of a County financing agreement 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. The Board of Commissioners desires to finance the costs of these projects by the use of an installment financing, as authorized under Section 160A-20 of the North Carolina General Statutes. Under the County's financing plan, the County will acquire Grady Brown Elementary School (and its associated land and buildings) from the Orange County Board of Education, and use that property as the collateral for the financing. The Board of Education has approved this property transfer. Under the guidelines of the North Carolina Local Government Commission, this governing body must make certain findings of fact to support the County's application for the LGC's approval of the County's 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 an amount estimated as up to approximately $8,150,000 to pay capital costs of various public improvements, and in particular the improvements shown on Exhibit A. 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 $8,150,000. Some of the financing proceeds may represent reimbursement to the County for prior expenditures on project costs, and some proceeds may be used to pay financing costs. 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. (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 this project. 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 financing. 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 purpose. The County will closely review proposed financing rates against market rates with guidance from the LGC and the County's financial adviser. All amounts financed will reflect either approved contracts, professional estimates or previous actual expenditures. (d) As confirmed by the County's 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 debt service on the financing will be the equivalent of up to 1/2 cent per $100 of valuation. Given this relatively low amount and based on the estimated interest rates to be payable and the proposed financing term, the County expects to be able to repay the financing within current resources, and no actual tax rate increase related to this financing will be necessary. (f) The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose 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 County intends that the adoption of this resolution will be a declaration of the County's official intent to reimburse project expenditures from financing proceeds. The County intends that funds that have been advanced for project costs, or which may be so advanced, from the County's general fund, or any other County fund, may be reimbursed from the financing proceeds. (b) The Board will hold a public hearing on this matter. The County Manager is directed to set the date and time of the hearing, and the Clerk to this Board is directed to publish a notice of the public hearing in the manner provided for by law. (c) The 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 ratified. (d) The County agrees to accept title to the Grady Brown School property to facilitate the financing arrangements. The Board will approve appropriate documents for this arrangement by later resolution. Ownership of Grady Brown School will revert back to Orange County Schools upon final payment of the installment financing. (e) This resolution takes effect immediately. Exhibit A- list of proiects to be financed with estimated amounts Project description Est. Amount Financed Cedar Ridge High School —construction of auxiliary gym 3,328,750 Vehicle replacements 771,209 Various school improvements and repairs for the Chapel 750,000 Hill —Carrboro system Information Technologies projects —hardware and software 746,125 acquisition Various school improvements and repairs for the Orange 478,000 County system (including Grady Brown Elementary) Soccer.com Soccer Center, Phase II land acquisition 425,000 Purchase new truck for rural curbside recycling 310,090 Purchase of solid waste disposal carts 234,000 Rogers Road water project— easement acquisition 212,000 Cedar Grove Community Center Library Kiosk—purchase 180,000 and install Board of Elections equipment—purchase and install 169,575 Recycling Roll-Cart Distribution and Maintenance Building 165,000 —purchase and construct Upper Eno Nature Preserve—construct parking lot and trail 125,000 work Purchase new generator for Hillsborough Commons 100,000 Financing and related costs 155,241 TOTAL $ 8,150,000 NOW THEREFORE BE IT ORDAINED by the Board of Orange County Commissioners tha his esolution is effective upon app r I. Upon,,motion of Commissioner 1 /4 rj_ seco ded by�16*rt"o mmi loner a foregoing resolution was ad p ed this the day of , 16. I, Donna Baker, the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the fore on oing is true copy of so much of the proceedings of said Board at a meeting held ti 2016, as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and the seal of said County, the day of 2016. o S BakeY Jerk to the Board 4 E ¢� 27 vrf �'ara1��'�