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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 6, 2017 <br /> Action Agenda <br /> Item No. 8-k <br /> SUBJECT: Adoption of the Final Financing Resolution Authorizing the Issuance of <br /> $13,700,000 in Installment Purchase Financing for Various Capital Investment <br /> Plan Projects <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Resolution Approving Gary Donaldson, (919) 245-2453 <br /> Financing Terms and Paul Laughton, (919) 245-2152 <br /> Documents for 2017 Robert Jessup, (919) 933-9891 <br /> Installment Financing <br /> PURPOSE: To adopt the final financing resolution authorizing the issuance of approximately <br /> $13,700,000 in installment financing to finance capital investment projects and equipment <br /> previously approved by the Board and as identified in the resolution, and including amounts to <br /> pay transaction costs. <br /> BACKGROUND: At the May 2, 2017 meeting, the Board of County Commissioners received <br /> preliminary information on capital projects and equipment financing for the fiscal year. At that <br /> meeting, the Board made a preliminary determination to finance costs of these projects and <br /> equipment by the use of an installment financing, as authorized under Section 160A-20 of the <br /> North Carolina General Statutes. The financing will also include amounts to pay transaction <br /> costs. <br /> The statutes require that the County conduct a public hearing on the proposed financing and <br /> refinancing contracts. The County conducted a public hearing at the May 2, 2017 Board <br /> meeting, and adopted the resolution supporting the application to the Local Government <br /> Commission (LGC) for approval of the financing. County staff has been in contact with the LGC <br /> staff, and staff expects no issues in receiving LGC approval. On May 16, 2017, the Board of <br /> County Commissioners approved Sterling National Bank to provide the financing. Sterling's <br /> proposal provides for a maximum annual interest rate of 2.83%. <br /> The proposed resolution approves substantially final financing documents and authorizes staff <br /> to complete the loan closing. Under the current schedule, staff expects to close on the financing <br /> the week of June 12, 2017. <br /> SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goals applicable to <br /> consideration of the resolution. <br />