Orange County NC Website
18 <br />1 <br />2 <br />Resolution supporting an application to the Local Government Commission for <br />3 <br />its approval of a financing agreement for the County <br />4 <br />5 <br />WHEREAS -- <br />6 <br />7 <br />The Board of Commissioners has previously determined to carry out the acquisition and <br />8 <br />construction of various public improvements, as identified in the County’s capital improvement <br />9 <br />plan, and County staff has determined and advised the Board that refinancing all or a portion of <br />10 <br />two prior installment financings may provide savings to the County. <br />11 <br />12 <br />The Boarddesires to finance the costs of these projects and to carry out the refinancing <br />13 <br />by the use of an installment financing, as authorized under Section 160A-20 of the North <br />14 <br />Carolina General Statutes. <br />15 <br />16 <br />Under the guidelines of the North Carolina Local Government Commission, the Board <br />17 <br />must make certain findings of fact to support the County’s application for the LGC’s approval of <br />18 <br />the County’s proposed financing arrangements. <br />19 <br />20 <br />by the Board of Commissioners of Orange <br />THEREFORE, BE IT RESOLVED <br />21 <br />County, North Carolina, <br />thatthe County makes a preliminary determination to finance <br />22 <br />approximately $26,470,000 to pay capital costs of various public improvements and to carry out <br />23 <br />the refinancing. The proposed list of projects and improvements to be financed appears in <br />24 <br />Exhibit A. The two financings that are to be refinanced are a) a 2006 installment financing <br />25 <br />contract secured by Carrboro High School and b) a 2006 Certificates of Participation installment <br />26 <br />financing secured by Gravelly Hill Middle School. <br />27 <br />28 <br />The Board will determinethe final amount to be financed by a later resolution. The final <br />29 <br />amount financed may be slightly lower or slightly higher than $26,470,000. Some of the <br />30 <br />financing proceeds may provide reimbursement to the County for prior expenditures on project <br />31 <br />costs, some proceeds may be used to pay financing expenses, and some proceeds may be <br />32 <br />used to provide any appropriate reserves. <br />33 <br />34 <br />that the Board of Commissioners makes the <br />BE IT FURTHER RESOLVED <br />35 <br />following findings of fact <br />: <br />36 <br />37 <br />(a)The proposed projects are necessary andappropriate for the County under all <br />38 <br />the circumstances. The proposed refinancings are necessary and appropriate for the County <br />39 <br />under all the circumstances because the refinancings will produce substantial debt service <br />40 <br />savings. <br />41 <br />42 <br />(b)The proposed installment financing is preferable to a bond issue for the same <br />43 <br />purposes. <br />44 <br />45 <br />The County has no meaningful ability to issue non-voted general obligation bonds for <br />46 <br />these projects. These projects will not produce sufficient revenues to support a self-liquidating <br />47 <br />financing. The County has in the past issued substantial amounts of voter-approved bonds, and <br />48 <br />it is appropriate for the County to balance its capital finance program between bonds and <br />49 <br />installment financings. <br />50 <br /> <br />