HomeMy WebLinkAboutRES-2021-021-Resolution Supporting an Application to the Local Government Commission for Its Approval of a County Financing Agreement RES -2021 -021 ` .s
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Resolution supporting an application to the Local Government
Commission for its approval of a County financing agreement
WHEREAS The Orange County 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 in Exhibit A. The County has also been
advised that the County may be able to save money at the same time by refinancing
some of its outstanding loans , as described in Exhibit B .
The Board has also determined to finance the costs of these projects g
ects through
an installment financing, as authorized under Section 160A - 20 of the North Carolina
General Statutes . In an installment financing, the County' s repayment obligation is
secured by a mortgage - type interest in all or part of the property being financed, but
not by any pledge of the County' s taxing power or any specific revenue stream . In this
case , the County expects to place that mortgage on the Whitted Building, Blackwood
Farm Park and possibly other facilities originally financed with loans now to be
refinanced .
North Carolina law requires that the County' s financing be approved by the
North Carolina Local Government Commission (the " LGC " ) , a division of the North
Carolina State Treasurer ' s office . 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 $ 18 , 700 , 000 to pay capital costs of public improvements and
acquisitions , and in particular those described in Exhibit A.
(b ) In addition, the County makes a preliminary determination to finance an
amount estimated as up to approximately $ 18 , 060 , 000 to refinance existing loans and
i
( 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 . Furthermore , the
refinancings will result in a lower debt service burden for the County.
(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 immediatelyeu
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Exhibit B - list of potential refinancings , with estimated amounts
Component Estimated Cost
2014 IPC Bank of America $ 3 , 600 , 000
2014 NC DEQ Loan $ 760 , 000
Series 2012 Limited Obligation Bonds $ 3 , 80S , 000
2017 IFC ( Sterling) $ 91895 , 000
Total Loan Amounts Refinanced $ 181060 , 000