Agenda - 02-07-2012 - 7b - Laserfiche WebLink

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value basis). The amount of obligations to be refinanced, and the total savings, are dependent on conditions at the time the County's obligations are offered by BB&T in the securities market. The financing will also include amounts to pay transaction costs. The statutes require that the County conduct a public hearing on the proposed financing contract. A copy of the published notice of this hearing is attached as Attachment A. After conducting the hearing and receiving public input, the Board will consider the adoption of the resolution provided as Attachment B. This resolution formally requests the required approval from the North Carolina Local Government Commission (LGC) for the County's financing arrangements, and makes certain findings of fact as required under the LGC's guidelines. County staff has been in contact with LGC staff, and staff expects no obstacles to receiving LGC approval. If the Board adopts the attached resolution indicating its intent to continue with the financing plan, the Board will be asked to consider an additional resolution giving final approval to the financing plan at its February 21, 2012 meeting. Staff expects the LGC to approve the financing plan at the LGC's meeting on March 6. Under the current schedule, staff expects to set the final interest rates and other terms of the financing around March 15, and to close on the financing by the end of March. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact in proceeding with the financing. A preliminary estimate of maximum debt service applicable to the school and County projects financing would require $513,050 in fiscal year 2012-13 with the highest debt service payment of $1.752 million falling in fiscal year 2020- 2021. The tax rate equivalent for the highest debt service payment is approximately 1.14 cents. Any savings from refinancings would of course reduce these debt service impacts. The estimated annual effect of the contemplated refinancings would be approximately $115,000, which has a tax rate equivalent of approximately .06 cents. The actual effects of the new debt service and refinancings may be higher or lower. These effects will be established by the time of the closing. RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing and subsequently adopt the resolution supporting the application to the Local Government Commission for approval of the financing arrangements.