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2 <br /> public hearing on financing proposals. The funding required for this project is approximately $14 million. <br /> Staff is proposing that the County split the financing in order to remain bank qualified (issuing less than $10 <br /> million in debt in a calendar year) for both 1996 and 1997. The County would borrow$5 million before the <br /> end of this calendar year and the other$9 million in calendar year 1997. General Statutes require that the <br /> Local Government Commission approve all financing arrangements of this nature. <br /> A motion was made by Commissioner Gordon, seconded by Commissioner Willhoit to approve <br /> the resolution as stated below and to authorize the Finance Director to execute all documents and <br /> procedural steps required in the LGC application process, and to establish the public hearing for 7:30 PM <br /> on Tuesday, November 19 at the OWASA Operations Center, and authorize the Clerk to advertise the <br /> public hearing. <br /> ORANGE COUNTY BOARD OF COMMISSIONERS <br /> A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION <br /> FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY <br /> NORTH CAROLINA GENERAL STATUTE 160A-20 <br /> WHEREAS, the County of Orange, North Carolina desires to construct a new elementary school in the <br /> Chapel Hi1UCarrboro City Schools district to address overcrowding at the elementary school level within the <br /> district; and <br /> WHEREAS, the County of Orange desires to finance the Project largely by the use of an installment <br /> contract authorized under North Carolina General Statute 160A, Article 3, Section 20; and <br /> WHEREAS, findings of fact by this governing body must be presented to enable the NC Local Government <br /> Commission to make its findings of fact set forth in North Carolina General Statute 159, Article 8, Section <br /> 151 prior to approval of the proposed contract: <br /> NOW THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County, North <br /> Carolina, meeting in regular session on the 15th day of October, 1996, make the following findings of fact: <br /> 1. The proposed contract is necessary or expedient because the elementary student population in the <br /> Chapel Hill-Carrboro City Schools is currently over the capacity of the district's existing elementary school <br /> buildings and no practical or timely alternative to the construction of permanent additional elementary school <br /> space is available. The student population in the district has increased rapidly in recent years and is <br /> projected by the North Carolina Department of Public Instruction to continue growing substantially for the <br /> foreseeable future. <br /> 2. The proposed contract is preferable to a bond issue for the same purpose because: <br /> a. availability of the new elementary school is urgently needed in time for the 1999-2000 school <br /> year and the contracting method is the most expeditious method of raising cash quickly to meet the <br /> planning, design, and construction timetable for a 1999-2000 school opening; <br /> b. the cost of the elementary school, estimated at$14 million, cannot be prudently raised from <br /> currently available appropriations, unappropriated fund balances, or non-voted bonds; <br /> c. the North Carolina General Assembly adopted legislation during the 1994 Session intended <br /> specifically to permit Orange County to pursue installment financing for an elementary school project that <br /> has since been successfully constructed and opened, and any future projects that might become <br /> necessary. <br /> 3. The cost of financing under the proposed contract could be greater than the cost of issuing general <br /> obligation bonds. However, this method of financing will increase the alternatives available to Orange <br /> County to obtain the most cost effective, timely, and flexible means possible of funding this necessary <br /> project. Given Orange County's excellent credit standing, and its past success in obtaining installment <br /> financing for the previous elementary school project that compared favorably with rates on other available <br /> financing mechanisms, any difference in the comparable costs between bond financing and installment <br /> purchase financing will be reasonable. <br />