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00 (0- (0 7S A--Rachmen+ 5 <br /> Resolution supporting an application to the Local Government Commission <br /> for its awDroval of financin arran ements far ublic school im rovement ro`ects <br /> WHEREAS— <br /> Orange County has been asked by the Boards of Education for both Orange <br /> g <br /> County Schools and the Chapel Hill — Carrboro City Schools to cooperate in the <br /> construction and financing of various public school improvements, including construction <br /> of a new auditorium wing at Stanback Middle School, various roof replacements and <br /> renovations for orange County Schools, and various roof replacements for the Chapel <br /> Hill---Carrboro City Schools. <br /> The total amount to be financed would be approximately $9,899,440. The Count <br /> will undertake this financing pursuant to the installment financing p rovisions of Section <br /> 160A--20 of the North Carolina General Statutes. The North Carolina Local Government <br /> Commission would have to approve any such financing arrangements. The County would <br /> expect this financing to qualify as a "Qualified School Construction Bond" (a "QSCB" <br /> under federal tax law and thereby allow the County to borrow the money at a very low <br /> effective interest rate, and possibly an effective interest rate of zero. <br /> Under the LGC's guidelines, this governing body must make certain findings of <br /> fact to support the County's application for the- L GC's approval of the financing <br /> arrangements. <br /> BE IT RESOL VELD by the Board of Commissioners of Orange County,.North <br /> • Carolina, that the County makes a preliminary determination to proceed with the' <br /> construction and financing of the various public school improvements described above. <br /> The Board will make a final determination to approve financing terms and conditions by <br /> a subsequent 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. <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 existing capacity to issue general obligation bonds for this <br /> project. Financing this project as an installment financing is consistent with the County's <br /> policy of using both general obligation bonds and installment financing for school capital <br /> needs. The small amount of financing needed makes it impractical to proceed as a <br /> separate bond issue. The availability of QSCB financing means that there would be no <br />