Minutes 02-07-2012 - Laserfiche WebLink

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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. 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 a self-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.