RES-2010-075 Resolution supporting an Application to the Local Government Commission for its approval of financing arrangements for public school improvement projects

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interest rate advantage to proceeding with a general obligation bond issue. In addition, using installment financing for this project will allow the County to better-match the timing of the financing to the timing of the project, and to take advantage of current favorable conditions in the construction market. (3) The estimated sums to fall due under the proposed financing contract will be adequate and not excessive for the proposed purpose. All amounts to be financed will reflect contract prices or well-developed estimates acceptable to the County and the LGC. The County will closely review debt service levels with the LGC. . (4) As confirmed to the Board at this meeting by the County's Finance Officer, (a) the County's debt management procedures and policies are sound and in compliance with law, and (b) the County is not in default under any of its debt service obligations. (5) The County estimates that this financing will have a maximum tax rate impact of less than 1 cent per $100 of assessed valuation, although this does not necessarily mean that County taxes will be increased as a result of this financing. The County will continue to work to minimise the tax impact of the contemplated financing, in a manner consistent with other County needs. The County believes that given the need for the projects and the availability of QSCB financing, such a tax rate impact is reasonable under all the cvrcumstances. (6) The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose for which public funds of the County may be expended pursuant to the Constitution and laws of North Carolina. (7) The Board currently estimates that the maximum amount to be financed for this project will be $9,899,440. This amount is an estimate; the final amount to be financed may be somewhat higher or lower than the estimate to match the final amounts allocated to the County by the State Department of Public Instruction for the issuance of QSCBs. BE IT FURTHER RESOLVED, as follows: (a) The Finance Officer is authorized and directed to take all appropriate steps toward the completion of the financing, including completing an application to the LGC for its approval of the proposed financing. All actions of the County's Finance Officer and other County representatives in furtherance of the completion of the contemplated financing are ratified, approved and confirmed. (b) The County intends that the adoption of this resolution will be a declaration of the County's official intent to reimburse project expenditures from financing proceeds. The County intends that fiznds that have been advanced for project costs, or which may be so advanced, from the County's general fund, or any other County fund, may be reimbursed from the financing proceeds.