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~, ~s _aooG - ozG. <br />.2 - 3 - Z,ad6 <br />8b y <br />NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners <br />of Orange County, North Carolina, as follows: <br />1. The Board makes an initial determination to finance the projects <br />described above by use of installment financing including certificates of <br />participation. The County estimates that the total amount to be financed will not <br />exceed $24,000,000, including amounts that may be needed to provide required <br />reserves, to pay financing costs and to pay other necessary and related costs. <br />2. The Finance Director is authorized and directed to proceed with the <br />proper steps toward completing the financing, including proceeding with an <br />application to the LGC for its approval of such financing. The Board appoints the <br />Finance Director as the County's authorized representative with respect to the LGC <br />application process. <br />3. The County requests that the LGC approve the County's application <br />for such financing. The Board makes the following findings of fact in support of its <br />application for approval and its determination to proceed with this financing: <br />(a) The proposed projects are necessary and appropriate for the <br />County under all the circumstances. All of these projects have been in the County's <br />capital investment plan for some period of time, and have received prior <br />confirmation from the Board as to their necessity and appropriateness for the <br />County. Construction of the; Gravelly Hill middle school is underway. The Board <br />believes that the proposed projects represent the best use of the borrowing capacity <br />(for installment financings) that the County has elected to use at this time. <br />(b) The proposed installment financing is preferable to a bond issue <br />for the same purpose. Using an installment financing for these projects allows the <br />County to address a series of needs as part of a flexible, long-term plan. Several of <br />the proposed projects will also receive funding from voter-approved general <br />obligation bonds. The County has no meaningful capacity to issue non-voted <br />general obligation bonds in the current fiscal year. It is appropriate for the County <br />to balance its capital finance program between bonds and installment financing. <br />(c) The estimated sums to fall due under the proposed financing <br />contract are adequate and not. excessive for the proposed purposes. The County <br />has, and will continue, to closely monitor construction budgets against available <br />funds. The County will closely review proposed financing rates against market <br />rates with guidance from the LGC. <br />94775v1 <br />