Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 12, 2006 <br />Action Agenda <br />Item No. 5--~ <br />SUBJECT: Resolution for Financing Related to Carrboro High School <br />DEPARTMENT: Finance <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Ken Chavious, 919-245-2453 <br />Resolution <br />Schedule <br />Public Hearing Notice <br />PURPOSE: To consider adopting a resolution required by the North Carolina Local <br />Government Commission (LGC) for approval of the acquisition of financing needed to complete <br />construction of the new Carrboro High School. <br />BACKGROUND: Construction of Carrboro High School in the Chapel Hill-Carrboro School <br />district is well underway. The capital budget far this project includes $9,000,000 in alternative <br />financing. During the capital and debt related discussions at the August 31, 2006 work <br />session, staff informed the Board of the need to proceed with the acquisition of the funds for the <br />project completion. As mentioned at the work session, staff currently expect to make short term <br />bank loan arrangements for this financing and then combine it into a larger Certificates of <br />Participation (COPs) financing which will be structtared in the upcoming months. <br />This proposed financing will require approval of the LGC. The requested Board action is the <br />initial step in the LGC approval process and involves the adoption of the attached resolution. <br />The resolution accomplishes several purposes that include: <br />• Makes the "findings of fact" that the LGC requires in support of the County's application <br />for financing approval; <br />• Authorizes County Staff to pursue the LGC application process; <br />• Authorizes County Staff to solicit financing proposals; <br />• Directs staff to arrange far a public hearing on the proposed financing (the proposed <br />public hearing date is October 3, 2006); <br />• Functions as a "reimbursement resolution", as provided under federal tax law, to preserve <br />the County's ability to reimburse itself out of financing proceeds. <br />If the Board approves the resolution, staff will proceed to solicit proposals from institutions <br />interested in loaning the County the necessary funds„ The recommended financing proposal will <br />be considered at the October 3, 2006 public hearing. <br />