HomeMy WebLinkAboutRES-2023-032-Public Hearing on the Financing of Various Capital Investment Plan Projects RES -202M32 p � � Attachment 2
Resolution supporting an application to the Local Government
Commission for its approval of a County Financing Agreement
2023 Multiple Project Installment Financing
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 .
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 $ 16 , 500 , 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
$ 16, 500 , 000 . 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 .
The County has no meaningful ability to issue non - voted general obligation
bonds for these projects . It is appropriate for the County to balance its capital
program between various types of financings, and the County has made extensive use
of voter - approved and two - thirds general obligation bonds . 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
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 ten -year capital improvement program, there will be no tax
increase directly attributable to the current proposed financing.
( 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 :
( a) The County intends that the adoption of this resolution will be a
Exhibit A - tentative roiect list with amounts to be financed
Project Est. Amount ( $ )
School Projects ( Combined for both Orange
County and Chapel Hill - Carrboro Schools ) 91449 , 740
County Vehicles 1 , 7421927
Roof and Building Facade Projects 11431 , 681
HVAC Projects 1 , 084 , 341
County IT Projects 897 , 070
Emergency Services Warehouse 583 , 757
County Communications System/ Radio Upgrades 556 , 447
Facility Accessibility, Safety and Security
Improvements 331 , 215
Emergency Services Renewals and Replacements 110 , 997
Project Totals 161188 , 175
Financing Costs and Contingencies 311 , 825
TOTAL $ 16 , 500 , 000
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
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.
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 May
2 , 2023 ; 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.
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Dated this day of MW 4) 023a
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