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R~S-aoo~-o~2 ~" <br />Resolution supporting an application to the Local Government Commission <br />for its approval of school financinE arrangements for the County <br />WHEREAS, <br />Representatives of the Chapel Hill - Carrboro Schools have described to County <br />staff and the Board of Commissioners the benefits of undertaking capital improvements <br />for City schools under the federal "Qualified School Construction Bond" program. This <br />program provides zero-interest or very low-interest financing for school projects. The <br />City Schools have applied for authorization to use up to $4.6 million in such financing to <br />finance the proposed arts wing at Carrboro High School. <br />The County is likely to undertake this financing, if it goes forward, pursuant to the <br />installment. financing provisions of Section 160A-20 of the North Carolina General <br />Statutes. The North Carolina Local Government Commission would have to approve any <br />such financing arrangements. <br />Under the LGC's guidelines, this governing body must make certain findings of <br />fact to support the County's application for the LGC's approval of the financing <br />arrangements. <br />BE IT RESOLVED by the Board of Commissioners of Orange County, North <br />Carolina, that the County makes a preliminary determination to carry out and finance the <br />school projects as described above. The Board will make a final determination as to <br />whether to proceed with this financing by a subsequent resolution. If the financing <br />proceeds, the Board will also make a final determination of the projects and amounts to <br />be financed, and give final approval to financing terms and conditions, by a subsequent <br />resolution. <br />BE IT FURTHER RESOLVED that the Board of Commissioners makes the <br />following findings of fact: <br />(1) The proposed projects are necessary and appropriate for the County under <br />all the circumstances. The proposed arts wing has been included in the County-approved <br />capital plan for several years, pending the availability of financing. <br />(2) The proposed installment financing is preferable to a bond issue for the <br />same purpose under all the circumstances. <br />The County has no ability to issue general obligation bonds for these projects <br />without referendum approval, and there is no time to conduct a bond referendum before <br />the December 31 deadline (under federal law) for completing this financing. This project <br />