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Home My WebLink AboutRES-2026-028-Public Hearing on the Financing of Various Capital investment plan project US-2026 -0285 b 5l51a (0 Attachment 2 Resolution supporting an application to the Local Government Commission for its approval of County Financing Agreements - 2026 Multiple Project Installment Financings 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 determined to finance the costs of these projects through installment financings, as authorized under Section 160A- 20 of the North Carolina General Statutes , The County also expects to divide the project funding into two financing phases and two separate series of limited obligation bonds, also as described in Exhibit A . 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 the collateral for each phase will include several County facilities that are already pledged for earlier financings, plus the County' s new crisis diversion center and the County Justice Facility. State law requires that the County' s financings 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 $ 60 , 800 , 000 to pay capital costs of public improvements and acquisitions, and in particular those described in Exhibit A, and to pay financing costs . The improvements and acquisitions will be divided between two financings . (b) The Board will determine the final amounts to be financed, and the division of projects among the phases, by later resolutions . The final total amount financed may be higher or lower than $ 60 , 800 , 000 , depending on financial market conditions and the final results of the project bidding process . 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 . Z . 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 financings are 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 (and will continue to make) extensive use of voter - approved and two - thirds general obligation bonds for other capital purposes . 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 not produce sufficient revenues to support a self- liquidating financing. ( c) The estimated sums to fall due under the proposed financing contracts 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) 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 financings , including completing applications to the LGC for its approval of the proposed financings . 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 5 , 2026 ; that a quorum was present and acting throughout this meetings and that this resolution has not been modified or amended, and remains in full effect as of today. Dated this _5AA� I day of May, 2025 . [S . Q tilall fN d Laura je n Clerk, Board of Commissioners % .. Orange County, North Carolina Exhibit A - Proposed Proiects and Cost Estimates Financing Phase I - Series 2026A Bonds - - Est. Amount ($) Project Components Blackwood Farm Park 61 , 039 Generator Projects 17 , 154 Interior finish replacements 367, 108 Affordable Housing 966, 500 Emergency Services Renewal & Replacement 484, 927 3 I Orange County Bidirectional Antenna ( BDA) 11264, 317 Upgrade Board of Elections Expansion for Storage 107 , 582 E 911 Computer Aided Dispatch ( CAD) Replacement 302 , 534 DTCC Academic Building 11 , 275 , 000 s HVAC Projects 2 , 1301047 Parking Lot Improvements 437, 946 Facades 911 , 648 Electrical Upgrades 74, 805 Vehicle replacements 379 , 815 Sportsplex 126, 581 Fire Alarm, Fire Suppression System 261 , 488 Replacements Information Technologies Infrastructure 419, 834 3 I 7 i i 3 Electrical Vehicle Charging Stations for County 402 , 069 Vehicles 510 Meadowlands Phase 2 291 , 647 Efland Cheeks Community Center 150) 000 Parking Lot Repairs 29 , 453 Solid Waste Vehicle and Equipment 31834; 632 Orange Grove Fire District - loan for station 1 , 700 , 000 Crisis diversion center - land acquisition and 31569 , 656 preliminary ( design etc .) costs Project Totals 2 % 765 , 781 Estimated total amount of Phase I Financing, 30 , 200 , 000 including borrowing costs and contingencies Financing Phase II - Series 2026B Bonds - - Est. Amount ($) Project Components Crisis diversion center - construction costs, incl 29 , 929 , 352 construction contingencies Estimated total amount of Phase II Financing, 30 , 600, 000 including borrowing costs i i I i i i i i I i 4 3 9 i 1