HomeMy WebLinkAboutRES-2022-013-Resolution supporting an application to the Local Government Commission for its approval of a County Financing Agreement i
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Resolution supporting an application to the Local Government
Commission for its approval of a County Financing Agreement
- 2022 Multiple Proiect Installment Financing
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Introduction - -
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 Board 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 . 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 .
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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 LGC ' s guidelines , 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 $ 46 , 000 , 000 to pay capital costs of public improvements and
acquisitions , and in particular those described in Exhibit A, and to pay financing costs .
(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
$ 46 , 000 , 000 , but the total amount financed will not exceed the amounts estimated
for the project costs and financing costs . Some of the financing proceeds may
represent reimbursement to the County for prior expenditures on project costs .
2 . The Board 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 .
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The County has no meaningful ability to issue non - voted general obligation
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bonds for these projects . It is appropriate for the County to balance its capital
program between various types of financings , and the County is using general
obligation bonds for additional school capital 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
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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
the County' s financial adviser . All amounts financed will reflect either approved
contracts , previous actual expenditures , or professional estimates .
( 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 projects are
authorized by law and are purposes 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 :
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( 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 County Manager and the Finance Officer to take
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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 .
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( c) This resolution takes effect immediately.
I certify as follows : that the foregoing resolution (which includes the attached
Exhibit A) 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
April 5 , 2022 % 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 thisLday of Acvk22M
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[ SEAL]
hf� LauraJ ens
Clerk, Board of Commissioners
Orange County, North Carolina
r arfK too
Exhibit A - list of projects to be financed with estimated amounts
Project Est. Amount ( $ )
Lake Orange Dam Remediation 873 , 399
Parks and Rec R& R 163 522
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Lands Legacy 250 , 000
Conservation Easement 262 , 000
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Neuse River Rules Nutrient Management 27, 000
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Solid Waste Vehicle Replacements 516 , 739
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Solid Waste Equipment Replacement - Grinder 833 , 500
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C &D Construction Phase II 230 , 643
High Rock Improvements 470 , 000
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ility, Safety and Security Facility Accessib
Improvements 195 , 584
HVAC Projects 1 , 354, 546
Major Plumbing Repairs 61 , 410
Orange County Southern Branch Library ( County
portion) 18 , 965 , 438
Parking Lot Improvements 241 , 648
Phillip Nick Waters Building Remediation 545 , 242
Roof & Building Facade Projects 1 , 212 , 106
Criminal Justice Resource Department 17 , 598
Southern Campus Expansion 29 % 422
Communication System Improvements 157 , 755
Emergency Services Substations
Efland EMS & Medical Examiners Station 41713 , 298
Waterstone EMS Station & Location Study 31506 , 702
Sportsplex - Facility Maintenance / Replacement 104, 332
ITGC 500 , 000
IT Infrastructure 11376 , 519
Sheriff Vehicles 255 , 473
EMS Vehicles 439 , 091
DEAPR Vehicles 68 , 650 j
Animal Services Vehicles 47, 666
OPT Vehicle Replacement 110 , 627
Chapel Hill — Carrboro Schools
Technology 908 , 047
Roofing 484 , 607
Recurring Capital 1 , 810 , 800
Fire Safety 164, 172
Supplemental Deferred 217, 568
Stormwater Management 105 , 295
Orange County Schools
Recurring Capital 1118 % 200
Supplemental Deferred 320 , 400
TOTAL $ 431000 , 000