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HomeMy WebLinkAboutRES-2020-009 Resolution supporting an application to the Local Government Commission for its approval of a County financing agreement 5 PES-2020-009 Attachment 2 s*h draft of February 12 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 $42.3 million 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 $42.3 million. 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: 6 (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, other than the school projects. 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. These projects will produce no revenues that could be used to support a self-liquidating financing. (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 and in consultation with the County's financial adviser. All amounts financed will reflect either approved contracts, professional estimates, or previous actual expenditures. (d) 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. (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. 7 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. 8 Exhibit A - list of projects to be financed with estimated amounts Component Estimated Cost Facility, Accessibility, Safety and Security Projects $ 212,634 Generator Projects $ 33,000 HVAC Projects $ 230,218 Major Plumbing Repairs $ 50,885 Northern Campus (Detention, EAC, Parks Ops Base) $ 29,071,556 Government Services (Link) Remediation $ 581,503 Skill Development Relocation - Europa Center Upfits $ 254,953 Roofing and Fagade Projects $ 686,167 Parks and Recreation Facility Renovations. Repairs, Safety Improvements $ 246,500 Conservation Easements $ 259,514 River Park, Phase II $ 118,509 ITGC Initiatives $ 197,826 IT Infrastructure $ 489,910 Communication Systems $ 273,221 Solid Waste - Equipment and Vehicles $ 717,228 Solid Waste -Administrative Building Remediation $ 281,324 Sportsplex Capital Items- 2 Vans $ 70,090 Schools - Recurring Capital Needs $ 3,000,000 Schools - Improvements to Older Facilities $ 1,607,300 Schools—Other Various Projects $ 4,012,132 Total Project Costs $ 42,394,470 The County will also use additional loan proceeds to pay financing costs.