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

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5 BE IT FURTHER RESOLVED that the Board of Commissioners makes the following findings of fact: (1) The proposed projects are necessary and appropriate for the County under all the circumstances. The County has worked with Chapel Hill - Carrboro School Board to develop a plan for financing school facilities, of which the currently-proposed elementary school is a part. The ambulances and convenience center improvements will improve services to County residents. (2) The proposed installment financing is preferable to a bond issue for the same purposes. As the elementary school .will be a discrete facility, it is particularly suitable for installment financing. The amounts to be financed for other County projects are relatively small, and it will be cost-effective for the County to combine that financing with the larger school financing. 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 meaningful ability to issue non-voted general obligation bonds for this project, and the County has no previously-authorized bonds for these projects. The projects will produce no revenues that could support aself-liquidating financing. The County expects that in the current interest rate environment for municipal securities that there will be no substantial difference in interest rates between general obligation bonds and installment financings for this project. The County maintains a balance in school construction financing between voter-approved bonds, pay-as-you-go funding and installment financing, and the Board believes that under the circumstances installment financing is the preferable vehicle for Elementary # 11. (3) The estimated sums to fall due under the proposed financing contract are adequate and not excessive for the proposed purpose. The County will closely review proposed financing rates against market rates with guidance from the LGC. All amounts financed will reflect either approved contracts or previous actual expenditures. (4) As confirmed by the County's Finance Officer, (i) the County's debt management procedures and policies are sound and in compliance with law, and (ii) the County is not in default under any of its debt service obligations. (5) The County estimates that the maximum tax rate impact of paying debt service on the financing for the new elementary school will be the equivalent of approximately 1.14 cents per $100 of valuation. Given the County's need for the new school, the Board believes that such a tax rate impact is reasonable under all the circumstances.