Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 3, 2007 <br />Action Agenda <br />Item No. 5 - a <br />SUBJECT: Public Hearing and Final Resolution for Alternative Financing <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) Yes <br />ATTACHMENT (S): <br />(Under Separate Cover) <br />Resolution <br />Financing Documents <br />INFORMATION CONTACT: <br />Ken Chavious 245-2450 <br />PURPOSE: To conduct a public hearing and consider adopting a resolution that provides for <br />final approval of installment financing for School and County capital projects. <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. In <br />addition the Board scheduled a public hearing on matters related to the advisability of entering <br />into the financing. Both Board actions are part of the process required by the Local <br />Government Commission (LGC) in order to obtain financing for the projects. The Board took <br />further action at the April 24, 2007 meeting to formally approve the projects for inclusion in the <br />financing. As previously reported, the SunTrust financing proposal is fora 20 year term at <br />4.14% interest. An application requesting approval of this proposed financing will be forwarded <br />to the Local Government Commission (LGC) in accordance with statutory provisions. The LGC <br />is scheduled to take action on the County's application on June 5, 2007. <br />As mentioned above, the final Board actions required for LGC approval of the financing are to <br />conduct a public hearing and to adopt a resolution providing final approval of the proposed <br />financing. The attached resolution has been prepared by Bond Counsel in accordance with <br />statutory and LGC requirements. The resolution accomplishes the following: <br />• Makes the determination to proceed with the financing. <br />® Directs and authorizes staff to execute the financing documents <br />• Authorizes the Finance Officer to complete the closing. <br />FINANCIAL IMPACT: As mentioned above, the financing is fora 20-year term with an interest <br />rate of 4.14%. The financing is structured in a manner that calls for annual principal payments <br />and semi annual interest payment with the first interest payment due in January 2008 (fiscal <br />