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4 <br /> L <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. 5-A <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 15, 1996 <br /> SUBJECT: Resolution Authorizing Local Government Commission(LGC)Application <br /> for Elementary School Installment Financing and Establishment of Public Hearing Date <br /> DEPARTMENT: Finance PUBLIC HEARING: YES: NO: x <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Ken Chavious, Ext. 2453 <br /> Public Hearing Notice <br /> TELEPHONE NUMBER: <br /> Hillsborough -732-8181 <br /> Chapel Hill -968-4501 <br /> Mebane -227-2031 <br /> Durham -688-7331 <br /> PURPOSE: To Consider the adoption of a resolution authorizing staff to file an application with the <br /> Local Government Commission(LGC)seeking approval for installment purchase financing for a new <br /> elementary school in the Chapel Hill-Carrboro School District,and to set a date for a Public Hearing on <br /> financing proposals. <br /> BACKGROUND: During the past several months the Board of County Commissioners,County Staff <br /> and both School Boards have been working together to develop long range plans to address school <br /> capital needs. These plans include a new elementary school in the Chapel Hill-Carrboro School District <br /> as an immediate need. In order to address this need,County and School District staff have identified <br /> resources to fund an installment purchase for this new school. <br /> The funding required for this project is approximately$14 million. Staff is proposing that the County <br /> split the financing in order to remain bank qualified(issuing less than$10 million in debt in a calendar <br /> year)for both 1996 and 1997. By doing this,the County can accomplish the financing in less time and <br /> save significant dollars in issuance costs, as well as obtain very favorable interest rates. It is proposed <br /> that the County borrow$5 million before the end of this calendar year and the other$9 million in <br /> calendar year 1997. Staff recommends that the County pursue a"split forward commitment"option. <br /> This option is one in which there is only one contract but the bank provides separate interest quotes on <br /> each year's financing amount. <br /> General Statutes require that the Local Government Commission(LGC)approve all financing <br /> arrangements of this nature. As a part of their review,the LGC requires a procedural step involving the <br /> adoption of a resolution by the County Commissioners. The attached resolution addresses the issues <br /> required by the LGC. In addition,the Statutes require that the Governmental unit entering into an <br /> installment purchase of this nature conduct a public hearing on the financing proposal selected for LGC <br />