HomeMy WebLinkAboutRES-2019-048 Resolution supporting an application to the Local Government Commission for its approval of a County financing agreement for various capital investment plan projects RES -201 M48
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 e THEREFORE , BE IT RESOLVE ® by the ® range County Board of
Commissioners , as follows .
( a ) The County makes a preliminary determination to finance approximately
$ 30 , 000 , 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
$ 30 , 000 , 000 . The final amount financed will include funds to pay financing costs and
other related costs ,
2 . 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 .
( 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 .
( 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 completing an application to the LGC
for its approval of the proposed financing . The Board ratifies all prior actions of County
representatives in this regard .
( c ) This resolution takes effect immediately .
Exhibit A - list of iaroIects to be financed with estimated amounts
............................._.............................................................I...........1..If,___........I I I I I I I I I.. ........._.............................................................................................:......._._.................................................................:......:............................._................................................_..._... ....... _
Component Estimated Cost
... .. ... .....:. .. ... .. ... ... :.......I.. .. .. . . _I .... . ..I. ....... .. - - _
Northern Campus Project : site preparation and preliminary
costs for new detention center , agriculture environment
center , and parks operations base $ 10 , 6007000
..._.. I I..I I_ _ _ . 1 . . .. ._ _ . _ . .. _ _.. . ... I IF I I I I_ I IF .. . _ . . _ __ . _I . _ ... . . f IF _
.. . .... . .._I.. ..... ... ... .... .... ................._ ................ ............:.:...........:.....:..........:.....................:......... ......:................ ................_
Southern Campus Project : improvements to the driveway
and access road to the Southern Campus , as well as
providing additional parking for the Seymour Center 4 , 675 , 000
_............................................................................._...............................................IF..................................................._.........__........._._.................................................................................. .. . . . . . . . . ..
......................._......................IF,........IF,......IF,..................................................................
.I............. ..I....... .... . . ... ._. .. .._ III IF I&.. ... ........_.... ... .... ................_......... ............ ................................................................... ...........................I..I.............. .. .. . . ..
Seymour Center Building Expansion 990 , 000
.. .. ..I__ .. _
I If
River Park Phase 11IF 2981500
I IF
...I. ...I.......I..:....I.._ .......................... ...... . ._..I I IF I I I.. . ...._
Link Center Remediation 61500 , 000
......... ._ ................_. .. .. .. . .. .., ...... ._....... ..._.. . ..... ._.. .. .. .. . .. . _ _ _ _ _ ....... ......1 .... . .
Passmore Center Remediation 1997114
. -_ I
Sportsplex Improvements / Equipment 605 , 036
... IF _ _ . _ _ . . _ _ _ _ _ I I IF
Community Loan Fund 224 , 340
I IF
IF
... .. .I.............. . .... .... .. . . .. .. ............. .. .... ... .....:. .
Vehicle Replacements 130301550
Whitted Building — Elevator Work 154 , 000
.
IF
Emergency Services Building Remediation 324 , 000
....I .I....I ... .._.IF-. . . . ._ ..I._. .. . . . ..: .......... .. .... .. ... .. . . ...:.:..... ...:.... . . .. . ..: .. ....:....... .. . _. . . . ... .. ..
Total 25 , 600 , 540
............. ....... ............................ ...................... ................................ ._ ....................... ............. ....... ..... . . _.... ....................... ............ .._. ..._........................................................................ ......
. .. . ........ .. __ .
The County will also use additional loan proceeds to pay financing costs .
NOW THEREFORE BE IT ORDAINED by the Board of Orange County Commissioners that
this resolution is effective upon approval . Upon motion of Commissioner Price , seconded
by Commissioner Marcoplos , the foregoing resolution was adopted this the 3 day of
September , 2019 .
I , Donna S . Baker , Clerk to the Board of Commissioners for the County of 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 September 3 , 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 4th day of September , 2019 .
sG
Donna S . Baker
Clerk to the Board
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