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HomeMy WebLinkAboutRES-2017-023 Resolution supporting an application to the Local Government Commission for its approval of a County financing agreement P707F RES-2017-023 56L 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 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 approximately $13,600,000 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 $13,600,000. 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 expenses or to provide any required reserves. BE IT FURTHER RESOLVED that the Board of Commissioners makes the following findings of fact: (1) The proposed projects are necessary and appropriate for the County under all the circumstances. (2) The proposed installment financing is preferable to a bond issue for the same purposes. The County is planning to issue both voter-approved and non-voted general obligation bonds for school projects and other purposes, and it is appropriate for the County to continue to balance its capital finance program between bonds and installment financing. These projects will not produce revenues sufficient to support a self-liquidating financing. The County expects that in the current interest rate environment for municipal securities there would be no material difference in the overall financing costs between general obligation bonds and installment financings for this project. (3) 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 its financial adviser and the LGC. All amounts financed will reflect either approved contracts, professional estimates or previous actual expenditures. (4) As confirmed by the County's Finance Officer, (a) the County's debt management procedures and policies are sound and in compliance with law, and (b) the County is not in default under any of its debt service obligations. (5) The County expects that there will be no actual increase in taxes necessary to meet debt obligations under the proposed financing arrangements. The County expects that interest rates to be payable by the County on the proposed financing, and the expected term of the financing, will allow the County to repay the financing within current resources. In addition, the County expects that debt service components related to landfill and Sportsplex projects will be paid from the revenues of the related enterprises. Given the County's need for the projects, the Board believes that any tax rate impact is reasonable under all the circumstances. (6) The County Attorney is of the opinion that the proposed projects are authorized by law and are 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 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 directs the Finance Officer 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. The Board ratifies all prior actions of County representatives in this regard. (c) 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 May 2, 2017; 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 64 day of 2017. [SEAL SOUP r --is LL a ♦ Donna S. Baker J7 Clerk, Board of Commissioners sz Orange County, North Carolina �f ¢ Q�1ura11a� Exhibit A - list of proiects to be financed with estimated amounts Project description Est.Amount Financed ($) Rogers Road sewer improvements 6,280,000 Sportsplex field house construction 2,800,000 Information Technologies projects - hardware and 1,000,000 software acquisition Vehicle replacements 789,722 Solid waste equipment replacements 562,717 Emergency services substation construction 500,000 Generator projects 375,000 Fairview Park access and parking improvements 325,000 Facility accessibility and security improvements 319,000 Roofing projects 194,700 Emergency services - radio replacements 166,000 Parking lot improvements 120,000 Cedar Grove Community Center renovations 60,000 Estimated total $ 13,492,139 The County may also use financing proceeds to pay financing costs.