Orange County NC Website
Browse       Search
Resolution making certain findings of fact and authorizing staff work for a <br /> proposed installment financing for the planned new Orange County high school <br /> WHEREAS, Orange County has previously approved in principle a plan to finance <br /> a portion of the construction costs for a new high school for the Orange County school <br /> district through an installment financing contract, as authorized under Section 160A-20 of <br /> the North Carolina General Statutes; <br /> WHEREAS, the Board of Commissioners has been advised by the Finance <br /> Officer, after consultation with school board representatives, that installment financing <br /> for project construction costs will be required in an amount not to exceed $13,500,000, <br /> and the Board has determined now to proceed with the installment financing; <br /> WHEREAS, under the guidelines of the North Carolina Local Government <br /> Commission (the "LGC"), this governing body must make certain findings of fact to <br /> support the County's application for the LGC's approval of the County's proposed <br /> financing arrangements for the project; <br /> NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of <br /> Orange County,North Carolina, makes the following findings of fact: <br /> 1. The proposed project is necessary and appropriate for the County under all the <br /> circumstances. The County accepts the determination in this regard initially made by the <br /> Orange County School Board. <br /> 2. The proposed installment financing is preferable to a bond issue for the same <br /> purpose. The County's long-range capital improvement plan for the County schools has <br /> contemplated an installment financing for a portion of this project's cost for some time, <br /> and the Board has.determined that the capital improvement plan represents the preferred <br /> program for combining the various types of financing available to the County in light of <br /> the various capital needs facing the County. The Board notes that approximately one-half <br /> of the project's cost will be paid for from proceeds of general obligation bonds approved <br /> by the County's voters in November, 1997. The County has no ability to issue non-voted <br /> general obligation bonds for this project, and this project will produce no revenues that <br /> could be used to support a self-liquidating financing. <br /> 3. The sums to fall due under the contract are adequate and not excessive for the <br /> proposed purpose. The County will obtain competitive proposals for the financing now to <br /> be approved and the County expects that its high credit rating will enable it to obtain <br /> favorable financing terms. In addition, general obligation bond proceeds will pay <br /> approximately one-half of the project's construction cost, and County pay-as-you-go <br /> capital funds will pay additional project costs. <br /> 4. The Finance Officer has confirmed to the Board at this meeting that (a) the <br /> County's debt management procedures and policies are sound and in compliance with law <br />