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HomeMy WebLinkAboutRES-2024-021-Resolution supporting an application to the Local Government Commission for its approval of a County Financing Agreement RES -2024- 021 f �6 � 701 ATTACHMENT 2 Resolution supporting an application to the Local Government In Commission for its approval of a County Financing Agreement - 2024 Multiple Pro iect 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 $ 23 , 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 $ 23 , 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 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 : ( 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 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. 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 7 , 2024 ; 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 this day of May, 2024 [ SE � � $ �� � Laura Jensen Clerk, Board of Commissioners 1 ` > Orange County, North Carolina Orange County, North Carolina - - Notice of Public Hearing 2024 Installment Financing for Various Pro ' ects The Board of Commissioners (the " Board ") of Orange County, North Carolina (the " County" ) , will hold a public hearing on May 7 , 2024, at 7 : 00 p . m . ( or as soon thereafter as the matter may be heard) . The purpose of the hearing is to take public comment concerning a proposed financing contract, under which the County would borrow an amount expected not to exceed $ 23 , 500 , 000 to pay for the various public improvements and acquisitions shown below, and to pay financing costs : [ Project list will go here . ] The total amount financed will not exceed the amounts estimated for the project costs and financing costs . The hearing will be held in the Board ' s usual meeting room in the County' s Whitted Building, 300 West Tryon Street, Hillsborough, North Carolina . The proposed financing would be secured by a lien on some or all of the property purchased or improved through the financing as well as - the County' s promise to repay the financing, but there would be no recourse against the County or its property ( other than the pledged property) if there were a default on the financing . The County expects that the County' s Whitted Building and several schools will serve as the primary collateral . All interested persons will be heard . The County' s plans are subject to change based on the comments received at the public hearing and the Board ' s subsequent discussion and consideration . The County' s entering into the financing is subject to obtaining approval from the North Carolina Local Government Commission . Persons wishing to make written comments in advance of the hearing or wishing more information concerning the subject of the hearing may contact Gary Donaldson, Orange County Chief Financial Officer, Post Office Box 8181 , Hillsborough, NC 27278 (telephone 919 / 24S - 2453 , email gdonaldson@ orange countync . gov) . Project Est. Amount ( $ ) Research Triangle Logistics Park $ 1 , 684 , 707 Lake Orange Dam Rehabilitation $ 252 , 024 Neuse River Rules / Gravelly Hill Middle School $ 300 , 000 Solid Waste Equipment Replacement $ 574, 971 501 West Franklin improvements $ 2 , 000 , 000 Whitted Stormwater Improvements $ 175 , 000 Bi - Directional Emergency Response K12 Coverage $ 1 , 3441674 Assorted Vehicles $ 805 , 743 Deferred Maintenance - capital projects for Chapel $ 5J18 , 023 Hill - Carrboro City Schools Durham Tech - new building construction $ 11 , 000 , 000 Project Totals $ 23 , 2551142 Financing Costs and Contingencies - approx . . $ 244, 858 TOTAL $ 23 , 5001000