RES-2010-079 Resolution Supporting an Application to the Local Government Commission for its approval of financing arrangements for the County - installment refinancings and certain equipment financing

Browse Search

1p ci, Resolution supporting an application to the Local Government Commission for its approval of financing arrangements for the County— installment refinancings and certain equipment financing WHEREAS-- Orange County has previously entered into a variety of installment financings under the provisions of Section 160A-20 of the North Carolina General Statutes. The County has determined that refinancing some of these previous financings could produce significant debt service savings for the County. In addition, the County has previously made a preliminary determination to proceed with the acquisition and financing of certain equipment, including telephone equipment and new property information management equipment. The County estimates the cost of this equipment as approximately $2,000,000. The North Carolina Local Government Commission must approve the County's financing arrangements. 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 of the financing arrangements. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, that the County confirms its preliminary determination to proceed with the equipment financing and determines to pursue the proposed refinancings. The Board will make a final determination to proceed with this financing, and to approve financing terms and conditions, by one or more subsequent resolutions. BE IT FURTHER RESOLVED that the Board of Commissioners makes the following findings of fact: (1) The proposed financings are necessary and appropriate for the County under all the circumstances. The refinancings will provide significant savings to the County. The equipment will be useful in maintaining and improving the efficiency of County operations. (2) The proposed installment financing is preferable to a bond issue for the same purpose under all the circumstances. As the financings that are proposed to be refinanced are all installment financings, it is most appropriate to carry out the refinancing as an installment financing. The County has no ability to issue general obligation bonds for equipment project without referendum approval. It is cost-effective to combine this relatively small equipment financing with the larger planned installment refinancing.