Orange County NC Website
5 <br />The County expects that in the current interest rate environment for municipal <br />securities there would be no material difference in interest rates between general <br />obligation bonds and installment financings for these projects. <br />(c) The estimated sums to fall due under the proposed financing contract are <br />adequate and not excessive for the proposed purpose. The County will closely review <br />proposed financing rates against market rates with guidance from the LGC and its <br />financial adviser. All amounts financed will reflect either approved contracts, previous <br />actual expenditures or professional estimates. <br />(d) As confirmed by the County's Finance Officer, (i) the County's debt <br />management procedures and policies are sound and in compliance with law, and (ii) the <br />County is not in default under any of its debt service obligations. <br />(e) The County estimates that the maximum tax rate impact of paying debt <br />service on the financing will be the equivalent of up to approximately 0.04 cents per $100 <br />of valuation. Given this low amount and based on the estimated interest rates to be <br />payable and the proposed financing term, the County expects to be able to repay the <br />financing within current resources, and no actual tax rate increase related to this financing <br />will be necessary. <br />(f) The County Attorney is of the opinion that the proposed project is <br />authorized by law and is a purpose for which public funds of the County may be <br />expended pursuant to the Constitution and laws of North Carolina. <br />BE IT FURTHER RESOLVED as follows: <br />(a) The County intends that the adoption of this resolution will be a declaration <br />of the County's official intent to reimburse project expenditures from financing proceeds. <br />The County intends that funds that have been advanced for project costs, or which may <br />be so advanced, from the County's general fund, or any other County fund, may be <br />reimbursed from the financing proceeds. <br />(b) This resolution takes effect immediately. <br />