Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 24, 2007 <br />Action Agenda <br />Item No. ~ -- <br />SUBJECT• Final Approval of Projects for Alternative Financing <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT (S): <br />Project Listing <br />INFORMATION CONTACT: <br />Ken Chavious, 245-2450 <br />PURPOSE: To consider approving the list of School and County Capital projects to be included <br />in the proposed alternative financing scheduled for Local Government Commission approval on <br />June 5, 2007. <br />BACKGROUND: At the April 10, 2007 meeting, the Board of Commissioners took action <br />authorizing staff to pursue private placement financing with SunTrust Bank to acquire funding <br />an amount not to exceed $50,057,000 for various School and County Capital Projects. The <br />"not to exceed amount" was approved by the Board with the understanding that the projects for <br />the financing were considered to be "tentative". In addition, the Board scheduled a public.. <br />hearing on matters related to the advisability of entering into the financing. Both Board actions <br />are part of the process required by the Local Government Commission (LGC) in order to obtain <br />financing for the. projects. The Board has scheduled a public hearing for May 3, 2007, at which <br />time the Board will be asked to take the final actions required to accomplish the financing. <br />After further discussions related to the proposed projects at the April 19, 2007 work session, the <br />attached listing of projects has been confirmed by the Board as the final projects to be included <br />in the financing. In order, to accomplish the actions required by the LGC at May 3; 2007 <br />meeting, the Board is asked to officially approve the attached listing of projects totaling <br />$50,057,000. <br />FINANCIAL IMPACT: As mentioned in previous meetings, the financing is for $50,057,000 on <br />a 20-year term with an interest rate of 4.14%. The financing is structured in a manner that calls <br />for annual principal payments and semi annual interest payment with the first interest payment <br />due in January 2008 (fiscal year 2007-08) followed by principal and interest payments beginning <br />in fiscal year 2008-09. For fiscal year 2007-08, debt service for this financing totals $1,278,122 <br />(just over 1 cent on the projected tax rate) and the 2008-09 debt service totals $4,518,250 for <br />