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HomeMy WebLinkAboutRES-2025-019-Public Hearing on the Financing of Various Capital Investment Plan Projects RES-2025 - 019;5yj ), 1(0/a6 Attachment 2 Resolution supporting an application to the Local Government Commission for its approval of a County Financing Agreement - 2025 Multiple Proiect 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 made a preliminary determination to finance project costs 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 acquired or improved, but not by any pledge of the County' s taxing power or any specific revenue stream . In this case, the County expects that some or all of the facilities listed on Exhibit B will serve as the primary collateral . State 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 . 1 . The Orange County Board of Commissioners RESOLVES, as follows : ( a) The County makes a preliminary determination to finance approximately $ 78 , 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 higher or lower than $ 78 , 000 , 000 . Some of the financing proceeds may represent reimbursement to the County for prior expenditures on project costs, and the County will use some proceeds to pay financing costs . 2 . The Board makes the following findings of fact to support 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 . These projects will not produce sufficient revenues to support a self- liquidating financing. 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 . ( 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 Pe 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, (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) The County expects there will be tax increases associated with the County' s overall capital improvement program . Given the County' s need for the projects, the Board believes that the overall effect on the County' s budget and the tax rate from repaying the borrowed money will be reasonable under all the circumstances . The County will manage the projects and its borrowing plans so as to minimize the tax impact while still allowing projects to proceed and addressing the County' s full range of needs . (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 Exhibits A and B) 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 6, 2025 ; 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 ko day of May, 2025 . [SEAL me Q�Moe)r . Laura Jense x Clerk, Board of Commissioners t2 �� Orange County, North Carolina Exhibit A - - Current Proposed Project List Project Est. Amount ( $) School capital projects 57 , 077, 708 Public building improvements, incl safety, 6 , 519 , 528 accessibility and sustainability improvements Emergency services projects 4, 306, 018 Vehicles 3 , 157 , 906 Sportsplex improvements 2 , 456, 000 IT infrastructure improvements 11665 , 255 Parks and recreation projects 11247 , 982 Affordable housing development 250 , 000 Project Totals 76, 6801397 Financing Costs and Contingencies - approx . 1 , 319 , 603 TOTAL 78 , 000, 000 i i 3 Exhibit B - Potential Collateral Facilities Orange County Library in Hillsborough, Whitted Building, and Blackwood Farm Park Also from Orange County Schools : Orange Middle, New Hope Elementary, Pathways Elementary and Orange High Also Ephesus Elementary School and Culbreth Middle School from the Chapel Hill - Carrboro City Schools I I I s t i i t 4 I 3� 73