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• Authorizes the Finance Officer to complete the closing. <br />• Provides for the County to reimburse itself for project expenditures incurred prior to <br />closing on the financing. <br />FINANCIAL IMPACT: Based on an annual interest rate of 4.39 percent for a fifteen year period, <br />staff estimates that annual principal and interest payments on the private placement financing <br />will total $988,515 ($600,000 in principal and $388,515 interest) for fiscal year 2007-08. This is <br />the equivalent of approximately .8 cents on the tax rate. <br />With the approval of this financing arrangement, the Board will have approved new financings <br />totaling $12.5 million ($3.6 million for CHCCS renovation projects, plus $9 million for Carrboro <br />High School) with a cumulative tax rate impact of 1.35 cents on the anticipated fiscal year 2007- <br />08 tax rate. Debt service payments will decrease annually as the principal decreases. The <br />projected debt payments fit into the County's Debt Management policy as presented most <br />recently at the September 14, 2006 BOCC work session. . <br />RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution <br />providing final approval of the proposed financing. <br />