Minutes 02-07-2012 - Laserfiche WebLink

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together more as the funding decreases. b. Public Hearinq on the Financinq for Chapel Hill-Carrboro Citv Schools Elementarv #11 and Other Countv Capital Proiects and Refinancinq of Existinq Obliaations The Board conducted a public hearing on the issuance of approximately $25.5 million in alternative financing for Elementary School #11 for Chapel Hill - Carrboro City Schools, for other County capital projects and to refinance existing obligations, and consideration of related resolution supporting the County's application to the Local Government Commission for its approval of the financing arrangements. Director of Finance and Administrative Services Clarence Grier said that the purpose of this is to listen to public comments for the issuance of approximately $25.5 million in alternative financing for Elementary School #11 for Chapel Hill - Carrboro City Schools, issuing $3.3 million of financing for other County capital projects, and to refinance existing obligations. The Local Government Commission is in favor of the financing arrangement. This refinancing would result in a debt service savings of approximately $3 million over the next 15 years. The final financial plan will be brought back at the February 21S' meeting. The financial impact for the school and the County projects is approximately $513,000 for the first fiscal year, 2013, and after that, it is $1.75 million through 2021. The savings for the refinancing of $50 million is about $200,000 a year over the next 20 years. Commissioner Gordon clarified that the amount should be $21.5 million. This will be changed in the resolution. NO PUBLIC COMMENT 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 projects 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.