Orange County NC Website
Browse       Search
16 <br /> 1 North Carolina Local Government Commission for the County's financing arrangements, and <br /> 2 makes certain findings of fact as required under the LGC's guidelines. County staff has been in <br /> 3 contact with LGC staff, and staff expects no obstacles to receiving LGC approval. <br /> 4 If the Board adopts the resolution (indicating its intent to continue with the financing plan), the <br /> 5 Board will be asked to consider a resolution giving final approval to the financing plan at its <br /> 6 November 19, 2013 meeting. Staff expects the LGC to approve the financing plan at the LGC's <br /> 7 meeting on December 1. Under the current schedule, staff expects to set the final interest rates <br /> 8 and other terms of the financing around November 15, and to close on the financing by the end <br /> 9 of December. <br /> 10 There is no financial impact related to this action. However, there will be <br /> 11 a financial impact in proceeding with the financing. A preliminary estimate of maximum debt <br /> 12 service applicable to the County projects financing would require the highest debt service <br /> 13 payment of$1,482,631 falling in fiscal years 2015-2019. The tax rate equivalent for the highest <br /> 14 debt service payment is approximately .923 cents. Based on current valuations, no adjustment <br /> 15 to the tax rate associated with this financing is contemplated to occur during the period noted. <br /> 16 <br /> 17 Clarence Grier noted the list of projects to be financed, as outlined on page 6 of the <br /> 18 abstract. He said the largest project is the Culbreth Middle School Science Wing. <br /> 19 He noted the 3 borrowing options outlined on attachment 3: 15 year Public Limited <br /> 20 Obligation Bonds (LOB); 20 year Public LOB; and 15 year Placed IPC. He said these options <br /> 21 have been researched and the recommended option is the 15 year Placed IPC, as it saves <br /> 22 approximately $200,000 in financing costs. <br /> 23 <br /> 24 A motion was made by Commissioner Gordon, seconded by Commissioner Price to <br /> 25 open the public hearing. <br /> 26 <br /> 27 VOTE: UNANIMOUS <br /> 28 <br /> 29 NO PUBLIC COMMENT <br /> 30 <br /> 31 A motion was made by Commissioner Price, seconded by Commissioner Rich to close <br /> 32 the public hearing. <br /> 33 <br /> 34 VOTE: UNANIMOUS <br /> 35 <br /> 36 A motion was made by Commissioner Gordon, seconded by Commissioner McKee to <br /> 37 adopt the resolution supporting the application to the Local Government Commission for <br /> 38 approval of the financing arrangements. <br /> 39 <br /> 40 Commissioner Dorosin referred to attachment 3 and asked for clarification on the <br /> 41 designation of the $200,000 savings that was mentioned. <br /> 42 Clarence Grier said this is found by comparing the costs under the "uses" section, with <br /> 43 special note of the Cost of Issuance. <br /> 44 Commissioner Dorosin asked if the total cost of issuance should be looked at. <br /> 45 Clarence Grier said that the total at the bottom in the far right of each column will reflect <br /> 46 this savings. <br /> 47 <br /> 48 VOTE: UNANIMOUS <br /> 49 <br /> 50 7. Regular Agenda <br />