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HomeMy WebLinkAboutRES-2018-026 Resolution supporting an application to LGC for financing agreement for 2018 combined projectsRES- 2018 -026 s *h draft of April 19 Resolution supporting an application to the Local Government Commission for its approval of a financing agreement - 2018 Combined Projects Installment Financing 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 these improvements through 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 $8,150,000 to pay capital costs of various public acquisitions and improvements, and in particular the projects 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 expenses or to provide any appropriate 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 general obligation bonds for school projects and other purposes both this year and in future years, 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 has no meaningful ability to issue non -voted general obligation bonds for these projects. 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 the LGC and the County's financial adviser. All amounts financed will reflect either approved contracts or previous actual expenditures. (4) 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. (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. 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 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: Exhibit A - list of projects to be financed with estimated amounts Project Description Estimated Amount Northern Campus Site Acquisition $ 394,500 Government Services Annex Building 350,000 HVAC Projects 122,000 Roofing Projects 102,444 IT Infrastructure 700,000 Communications Systems 920,000 Cedar Grove Community Center 751000 Facility Accessibility and Security Improvements 30,000 Vehicle Replacements 1,106,514 Miscellaneous County equipment 184,000 Chapel Hill HS Architecture and Facility Improvements 6011000 Classroom and Building Improvements (OCS) 2541000 Food Services (OCS) 1451000 Passmore Center Renovations 5501000 Information Technologies 500,000 IT Broadband Connectivity 60,000 IT Governance Council Initiatives 690,503 911 Center Improvements 1771832 Conservation Easements 500,000 Cedar Grove Park, Phase II 60,000 Parks and Recreation Facility Renovations 1951000 Affordable Housing Land Banking 2931000 TOTAL ESTIMATED PROJECT COSTS $ 8,010,793 The County also expects to use some financing proceeds to pay financing costs. (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 1, 2018; 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 day y of May, ,