RES-2012-016 Resolution Supporting An Application to the LGC for its approval of a financing agreement for Elementary School #11 and Other County Capital Projects and Refinancing of Existing Obligations

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Res. 2012-016 a- 7 ~~ ~~ Resolution supporting an application to the Local Government Commission for its approval of a financing agreement for the County -for Elementary School #11, for other County capital proiects and to refinance existing obligations WHEREAS -- Orange County has previously determined to carry out the acquisition and construction of a new elementary school for the Chapel Hill - Carrboro school system, often referred to as "Elementary # 11," and to finance the costs of this project by the use of an installment financing, as authorized under Section 160A-20 of the North Carolina General Statutes. The Board of Commissioners has also determined to fund approximately $3,500,000 for additional County capital projects, including approximately $3.0 million for improvements to solid waste convenience centers and just over $500,000 for the purchase of three ambulances. County staff has further advised the Board that because of generally low borrowing rates, the County may be able to save money by refinancing a variety of the County's existing installment financings. The Board believes a single installment financing for the new school, the additional County projects and to carry out refinancings would be in the County's best interest. This financing will require approval from the North Carolina Local Government Commission. Under the LGC's guidelines, this governing body must make certain findings of fact to support the County's application to the LGC for its approval of the proposed financing arrangements. THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, that the County makes a preliminary determination to finance approximately $21,500,000 to pay capital costs of the proposed new elementary school and $3,500,000 to pay costs of the other County projects described above. BE IT FURTHER RESOLVED that the Board approves additional financing as appropriate to carry out beneficial refinancings of existing County obligations, with the amount of this financing currently estimated as not to exceed $50,000,000. The Board will make a final determination to proceed with the financing, and to approve financing terms and conditions, by one or more subsequent resolutions. Likewise, the Board will establish a maximum amount to be financed by a later resolution. Some financing proceeds may be use to reimburse the County for prior expenditures on project costs, and some proceeds will be used to pay financing costs.