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Home My WebLink AboutRES-2019-018 Resolution supporting an application to LGC for County financing RES -201 M 18 s * h draft of February. 28 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 various public improvements and acquisitions , as identified in the County' s capital improvement plan and as described on Exhibit A . The Board of Commissioners has also determined to finance the costs of these projects 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 . 1 . THEREFORE , BE IT RESOLVED by the Orange County Board of Commissioners , as follows : (a) The County makes a preliminary determination to finance approximately $ 25 , 985 , 000 to pay capital costs of public improvements and acquisitions, and in particular those described on Exhibit A . (b ) 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 $ 25 , 985 , 000 . I The Board of Commissioners makes the following findings of fact in support of the County' s application to the LGC : (a) The proposed projects are necessary and appropriate for the County under all the circumstances . i ( 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 produce no revenues that could be used to support a self- liquidating financing . The County is in the midst of a program for issuing voter - approved bonds for school purposes , and it is appropriate for the County to balance its capital program between various types of financings . 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 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 . All amounts financed will reflect either approved contracts , professional estimates , or previous actual expenditures . ( d ) As confirmed by the County' s Finance Officer, ( 1 ) 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 ) Although the County expects there will be tax increases associated with the County' s overall capital improvement program, any tax increase directly attributable to the current proposed financing will be minimal . The County will manage the projects and its borrowing plans so as to minimize the tax impact while still allowing the projects to proceed . The County believes that the tax rate impact of this financing is reasonable under all the circumstances . In addition , the County expects that debt service related to the solid waste fund projects will be fully paid from the County' s solid waste enterprise fund, and the debt service related to the utility projects in the Hillsborough EDD will be paid from Article 46 sales tax receipts . (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 . 3 . Additionally, the Board resolves 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 (1 ) 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 . Exhibit A - list of Droiects to be financed with estimated amounts Component Estimated Cost .... .. : .......................... . .I ., IT Infrastructure and Governance Council Initiatives $ 769 , 497 ..... . .. . . . . ...... . ...... .. ........ ....... ... Sheriff tons Body Cameras 300 , 000 Parks and Recreation Facility Renovations......... .: . ........................................................... ....................................... ...... 371 000 ......m Vehicle Replacements 689 , 328 ....... ........................ .......... ......I..............:..._............ 1:........._.....I.I..I.. I......I..........:.--. School Capital 31 000 , 000 Communication Systems Portable Radios 505 , 000 ...... .. . .I.... . .... o--- . ..:...: ...._ .._... .. ......... . .. Emergency Services ( Backup Consoles ) 985 000 . .. ................................................. .. Criminal Justice Resource Department Improvements 75 , 000 ...... . . _... Facility Accessibility and Security Improvements. 114 500 __ ........ . ..:....... ................................. . .......... ..............................VI.... ... HVAC Projects 37 , 000 _ _. __ .- Lower Link Center Up - Fit *VFaF 210 000 Roofing Projects 511 , 800 _ . _ IF Southern Campus Expansion 4 , 000 , 000 ........ . ... . . ... . .......... ......... . . . .. .. .. ..... ..... . ..... Seymour Center ( Senior Center) 990 , 000 . am a - Southern Human Services Center Expansion 375 , 000 _. ..... ......It... ......... _ ...:.. :.....:.... :.. : .. .. . . . IT Broadband Connectivity 500 000 Conservation Easements 250 , 000 Mountains to Sea Trail 263 , 000 Schools Facilities Improvements 3 ggg egg _ , River Park , Phase II 350 , 000 Historic Rogers Road Neighborhood Community Center- related 126 , 225 Meadowlands Emergency Center 2 153 209 _ _ Government Services Annex Remediation 685 , 936 Link Center Remediation 1 , 533 , 469 .. ..... . . . . Solid waste system onto trucksI IF 984 , 000 Solid waste system High Rock facility construction 571 , 000 .. .... _ ..... ... . ...... ... ........ .... _........ .. ... Hillsborou h EDD — utilit pro ects g Y p J 1 3001 000 _ ...._... .... . _ ... ._.. _ ._._... . .. ..._..._ .. ......_........ .. ..........._ Total Project Costs . ...... ....._.. ........... 257539 , 763 Financing Costs/ Underwriter's Discount/ Contingency $ 445 , 237 Total Financing $ 25 , 985 , 000 ORANGE COUNTY BOARD OF COMMISSIONERS NOW THEREFORE BE IT ORDAINED by the Board of Orange County ommissioners that this resolution is 4eftive upon, approval . Upon motion of Commissioner seconded by Commissione the foregoing resolution was adopted this the jjday of 019 . I , Donna S . Baker, Clerk to the Board of Commissioners for the County o Orange , North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on �L,c. 1k � � , 2019 , 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 19 . f t� Donnah . raker Clerk to the Board SEAL � 17 0 ° www. co . orange . nc . us Protecting and preserving - People, Resources, Quality of Life Orange County, North Carolina - You Count! (919) 245-2130 • FAX (919) 644- 0246