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<br />proposal provides not only competitive interest rate and prepayment terms <br />but also lower than expected transaction costs. <br />As confirmed to the Board at this meeting by the County's Finance Officer, (i} <br />the County's debt management procedures and policies are sound and in <br />compliance with law, and (ii) the County is not in default under any of its debt <br />services obligations. <br />The County expects that the amounts required to repay the amounts financed <br />for the projects will require the equivalent of a real property tax increase of <br />approximately 3.5 cents. Such an increase is appropriate under all the <br />circumstances, given the need for the projects. <br />The County Attorney is of the opinion that the proposed projects are <br />authorized by law and are purposes for which public funds of the County may <br />be expended pursuant to the Constitution and laws of North Carolina. <br />The County intends that the adoption of this resolution will be a declaration of the <br />County's official intent to reimburse project expenditures from financing proceeds. <br />The County intends that funds that have been advanced, or that may be advanced, <br />from the County's general fund, for project costs will be reimbursed from the <br />financing proceeds. <br />A public hearing on this matter will be held at the Board's meeting of May 3, 2007. <br />The Manager is authorized and directed to set the time of the hearing, and the Clerk <br />to this Board is authorized and directed to publish a notice of such public hearing in <br />the manner provided for by law and in substantially the form of Exhibit B. <br />This resolution takes effect immediately. <br />VOTE: UNANIMOUS (with Commissioner Jacobs abstaining) <br />b. County Capital Funding Policy Amendments <br />The Board considered amending the County's Capital Funding Policy to include use of <br />the anticipated NC Education Lottery proceeds, intent for funding for recurring capital and <br />presentation of future Capital Investment Plans. <br />Budget Director Donna Coffey introduced this item. She said that most recently at the <br />March 20t" work session, the Manager walked the County Commissioners through the County's <br />current capital funding policy and the formula. The current policy does not include lottery <br />proceeds. These proceeds are being received, and the estimate is that the County will receive <br />about $2 million this year compared to the $2.4 budgeted and compared to the $2.7 that the <br />State projected. Also, during the March 20t" meeting, both school systems presented a long list <br />of capital needs, including renovations to all of the facilities. Each school system noted that one <br />of the top priorities was updating the older facilities, and the requests far updating those <br />facilities totaled about $25.3 million for the two school systems. Given that total, it will take a <br />long time to fully fund the renavatian needs on apay-as-you-go basis. The Manager has made <br />some recommendations about this. <br />The current policy dedicates the equivalent of four cents on the property tax each year to <br />school and County recurring capital projects. Three cents is dedicated to school projects and <br />one cent is dedicated to County projects. To date, due to fiscal constraints over the last several <br />years, the Board has been able to fund only two cents of that, and all of those two cents is <br />currently going to school projects. <br />With regard to the calendar for the CIP, this has normally been presented in late spring. <br />The proposal is to have the Board look at it in the fall when things are not so compacted with <br />the budget. <br />