RES-2013-040 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the County

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RES-2013-040 Resolution Supporting an Application to the Local Government Commission for its Approval of a Financing Agreement for the County WHEREAS-- The Board of Commissioners has previously determined to carry out the acquisition and construction of various public improvements, as identified in the County's capital improvement plan. The Board desires to finance the costs of these projects by the use of an installment financing, as authorized under Section 160A-20 of the North Carolina General Statutes. Under the guidelines of the North Carolina Local Government Commission, the Board must make certain findings of fact to support the County's application for the LGC's approval of the County's 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 $10,000,000 to pay capital costs of various public improvements. The proposed list of projects and improvements to be financed appears on Exhibit A. The Board will determine the final amount to be financed by a later resolution. The final amount financed may be slightly lower or slightly higher than $10,000,000. Some of the financing proceeds may provide reimbursement to the County for prior expenditures on project costs, and some proceeds may be used to pay financing costs. BE IT FURTHER RESOLVED that the Board of Commissioners makes the following findings of fact: (a) The proposed projects are necessary and appropriate for the County under all the circumstances. (b) The proposed installment financing is preferable to a bond issue for the same purposes. The County has no meaningful ability to issue non-voted general obligation bonds for this project. These projects will not produce sufficient revenues to support a self- liquidating financing. The County has in the past issued substantial amounts of voter- approved bonds, and it is appropriate for the County to balance its capital finance program between bonds and installment financing.