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HomeMy WebLinkAboutAgenda - 02-07-2017 - 7-b - Reimbursement Resolutions for General Obligation Bond Projects 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 7, 2017 Action Agenda Item No. 7-b SUBJECT: Reimbursement Resolutions for General Obligation Bond Projects DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Schools Reimbursement Bob Jessup, (919) 933-9891 Resolution with List of Gary Donaldson, (919) 245-2453 Projects Paul Laughton, (919) 245-2152 Attachment 2. Housing Reimbursement Resolution PURPOSE: To approve resolutions providing for General Obligation Bond proceeds reimbursement for school and housing capital projects expended prior to bond issuance. BACKGROUND: On November 8, 2016 Orange County voters approved $120 million in General Obligation bonds to fund capital improvements for the Chapel-Hill Carrboro City Schools and Orange County Schools, and $5 million to fund capital improvements for providing housing for persons of low and moderate income. Attachment 1 includes the list of school projects to be funded with general obligation bond proceeds. The total expenditures are consistent with the amounts authorized in the County's Capital Investment Plan. However, the distribution of funds between projects has been reallocated to reflect the most recent information available. The Orange County Schools project list was updated to include the acquisition of the Orange Charter School facility for $3.1 million with an offsetting reduction in the Cedar Ridge High School project. The balance of Cedar Ridge High School project is anticipated to be funded using existing impact fee revenue due to its impact on school capacity. The Chapel Hill Carrboro City Schools project list increases the amount of funds allocated to the Lincoln Center Campus Redevelopment and reduces the amount allocated to Chapel Hill High School. The 2013 Facilities Assessment estimated the Lincoln Center project at $21 million. The District recently received an updated cost estimate of approximately $24.6 million. The District reports that this increase is primarily driven by construction cost increases of approximately 5% annually. The Chapel Hill High School project is now budgeted at approximately $47 million to offset the increase in the Lincoln Center project and to account for the allocation of bond funds based on the average daily membership that was authorized in the FY2016-17 Budget. 2 The attached Reimbursement Resolutions allow the County to advance fund initial project costs if necessary, and then reimburse itself from financing proceeds upon the issuance of the General Obligation Bonds, now scheduled for Fall 2017. FINANCIAL IMPACT: Pending projects may be cash financed if necessary from County funds and then reimbursed with General Obligation bond proceeds. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal associated with this agenda item. RECOMMENDATION(S): The Manager recommends the Board approve the Reimbursement Resolutions. 3 RES-2017-008 Attachment 1 Reimbursement Resolution - Related to spending on school capital projects pending the issuance of the County's voter-approved bonds WHEREAS-- Orange County intends to undertake a Project (as described below), use its own funds to pay initial Project costs, and then reimburse itself from financing proceeds for these early expenditures. The Finance Officer has advised the Board that it should adopt this resolution to document the County's plans for reimbursement, in order to comply with certain federal tax rules relating to reimbursement from financing proceeds. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Project is capital improvements for public schools, both for the Chapel-Hill Carrboro schools and the Orange County schools. 2. The County intends to advance funds for initial Project costs, and then reimburse itself from financing proceeds. The expected primary type of financing for the Project (which is subject to change) is the County's general obligation school bonds approved by the voters on November 8. The expected maximum amount of bonds or other obligations to be issued or contracted for the Project is $120,000,000, which is the amount of the voter-approved school bonds. 3. Funds for the early Project expenditures may come from the County's General Fund, from the County's school capital fund, or from any other County fund. 4. The County intends for the adoption of this resolution to be a declaration of its official intent to reimburse itself from financing proceeds for Project cost expenditures. 4 $120 Million School Bond Projects Item Project Amount School Bonds Chapel Hill Carrboro City Schools: Lincoln Center Campus Redevelopment 25,000,000 Chapel Hill High School Renovation 47,108,000 Chapel Hill Carrboro City Schools Total 72,108,000 Orange County Schools: Roof Replacements: AL Stanback Middle 1,527,950 Central Elementary 608,940 Cameron Park Elementary 577,347 Efland-Cheeks Global Elementary 350,821 Grady Brown Elementary 907,771 Hillsborough Elementary 175,000 Total 4,147,829 Mechanical Systems: AL Stanback Middle 4,000,000 Central Elementary 1,638,200 Cameron Park Elementary 1,287,000 Elfand-Cheeks Global Elementary 2,034,000 Grady Brown Elementary 704,000 Hillsborough Elementary 458,233 New Hope Elementary 2,002,738 Orange High School 8,900,000 Total 21,024,171 Classroom Wing Addition: Cedar Ridge High School 11,400,000 Total 11,400,000 Replace Windows: Grady Brown Elementary 220,000 Total 220,000 Hazardous Materials Remediation: Grady Brown Elementary 500,000 Total 500,000 Replace Transportation Facility: Joint Project with CHCCS 5,000,000 Total 5,000,000 Implementation of School Safety Initiatives: District Wide 2,500,000 Total 2,500,000 Acquisition: Existing Charter School Facility 3,100,000 Total 3,100,000 Orange County Schools Total 47,892,000 School Bond Projects Total 120,000,000 5 RES-2017-009 Attachment 2 Reimbursement Resolution - Related to spending on affordable housing projects pending the issuance of the County's voter-approved bonds WHEREAS-- Orange County intends to undertake a Project (as described below), use its own funds to pay initial Project costs, and then reimburse itself from financing proceeds for these early expenditures. The Finance Officer has advised the Board that it should adopt this resolution to document the County's plans for reimbursement, in order to comply with certain federal tax rules relating to reimbursement from financing proceeds. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Project is capital improvements related to providing housing for persons of low and moderate income. 2. The County intends to advance funds for initial Project costs, and then reimburse itself from financing proceeds. The expected primary type of financing for the Project (which is subject to change) is the County's general obligation bonds approved by the voters on November 8, 2016. The expected maximum amount of bonds or other obligations to be issued or contracted for the Project is $5,000,000, which is the amount of the voter-approved bonds. 3. Funds for the early Project expenditures may come from the County's General Fund or from any other County fund. 4. The County intends for the adoption of this resolution to be a declaration of its official intent to reimburse itself from financing proceeds for Project cost expenditures.