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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 2, 2017 <br /> Action Agenda <br /> Item No. 5-a <br /> SUBJECT: Public Hearing on the Financing of Various Capital Investment Plan Projects <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Public Hearing Notice Gary Donaldson, (919) 245-2453 <br /> Attachment 2. Resolution Paul Laughton, (919) 245-2152 <br /> Bob Jessup, (919) 933-9891 <br /> PURPOSE: To conduct a public hearing on the issuance of approximately $13,600,000 to <br /> finance capital investment projects and equipment for the 2016-17 fiscal year; and to approve a <br /> related resolution supporting the County's application to the Local Government Commission <br /> (LGC) for approval of the financing plan. <br /> BACKGROUND: County staff estimates that the total amount to be financed for capital <br /> investment projects and equipment will be approximately $13,600,000 including cost of <br /> issuance. <br /> North Carolina General Statutes require that the County advertise and conduct a public hearing <br /> on the proposed financing. A copy of the notice of this hearing as published in The Herald Sun <br /> is provided as Attachment 1. <br /> After conducting the public hearing and receiving public input, the Board will consider the <br /> adoption of the resolution (Attachment 2). This resolution formally requests the required <br /> approval from the North Carolina Local Government Commission (LGC) for the County's <br /> financing, and makes certain finding of fact as required under the LGC's guidelines. County <br /> staff has been in contact with the LGC staff, and staff expects no issues to receiving LGC <br /> approval. <br /> If the Board adopts the resolution indicating its intent to continue with the financing plan, the <br /> Board will be asked to consider a resolution giving final approval to the financing plans at the <br /> June 6, 2017 BOCC meeting. <br /> FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be <br /> a financial impact in proceeding with the financing. A preliminary estimate of maximum debt <br /> service applicable to the capital investment projects and equipment financing would require the <br /> highest debt service payment of $1.6 million in FY2017-18. The tax rate equivalent for the <br />