Agenda - 10-18-94 - V-A - Laserfiche WebLink

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2 ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 WHEREAS, the County of Orange, North Carolina desires to construct a new elementary school in the Chapel Hill-Carrboro City Schools district to address overcrowding at the elementary school level within the district; and WHEREAS, the County of Orange desires to finance the Project largely by the use of an installment contract authorized under North Carolina General Statute 160A, Article 3, Section 20; and WHEREAS, findings of fact by this governing body must be presented to enable the North Carolina Local Government Commission to make its findings of fact set forth in North Carolina General Statute 159, Article 8, Section 151 prior to approval of the proposed contract; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County, North Carolina, meeting in regular session on the 18th day of October, 1994, make the following findings of fact: 1. The proposed contract is necessary or expedient because the elementary student population in the Chapel Hill-Carrboro City Schools is significantly over the capacity of the district' s existing elementary school buildings and no practical or timely alternative to the construction of permanent additional elementary school space is available. The student population in the district has increased rapidly in recent years and is projected by the North Carolina Department of Public Instruction to continue growing substantially for the foreseeable future. 2. The proposed contract is preferable to a bond issue for the same purpose because: a. availability of the new elementary school is urgently needed in time for the 1996-97 school year and the contracting method is the most expeditious method of raising cash quickly to meet the extremely tight construction timetable for a 1996-97 school opening; b. the cost of the elementary school, estimated at just over $10.6 million, cannot be prudently raised from currently available appropriations, unappropriated fund balances, or non-voted bonds; c. the North Carolina General Assembly adopted legislation during the 1994 Session intended specifically to permit Orange County to pursue installment financing for this elementary school project, and any future projects that might become necessary. 3. The cost of financing under the proposed contract could be greater than the cost of issuing general obligation bonds. However, this method of financing will increase the alternatives available to Orange County to obtain the most cost effective, timely, and flexible means possible of funding this necessary project. Given Orange County' s excellent credit standing, any difference in the comparable costs between bond financing and installment purchase financing will be reasonable.