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/0-o5-~dl~ <br /></ 1~ <br />1`~~s-av~a-v~-5 <br />.Resolution supporting an application to the Local Government Commission <br />for its approval of financing arrangements for public school improvement projects <br />WHEREAS <br />Orange County has been asked by the Boards of Education for both Orange <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 County <br />will undertake this ,financing pursuant to the installment financing provisions 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 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 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 />