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3 <br />2006 Orange County financing for Carrboro High School -- Resolution supporting <br />an application to the Local Government Commission for its approval of a financing <br />agreement, and taking other appropriate action <br />WHEREAS-- <br />Orange County has previously undertaken to finance the acquisition and <br />constntction of a new high school for the Chapel Hill - Carrbora school district, to be <br />known as Carrboro High School, and has established a financing plan that combines pay- <br />as-you-go funding, general obligation bonds and installment financing, <br />The County Commissioners now desire to continue the financing process for the <br />high school by providing tentative approval for approximately $9,000,000 in financing <br />for the project by the use of an installment conh•act, as authorized under Section 160A-20 <br />of the Not°th Carolina General Statutes. <br />Under the guidelines of the North Carolina Local Government Commission (the <br />"L,GC"), this governing body must tnalce certain findings of fact to support the County's <br />application for the LGC's approval of the County's proposed financing arrangements for <br />the project, <br />NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of <br />Orange County, North Carolina, makes the following findings of fact: <br />1. The proposed project is appropriate for the County under all the <br />circumstances. The project has been considered in detail by the Board on multiple <br />occasions and is appropriate to serve the school population in the Chapel Hill -Carrboro <br />district. <br />2, The proposed installment financing of approximately $9,000,000 is <br />preferable to a bond issue for the same purpose, It is appropriate for the County to <br />balance its capital finance program between bonds and installment financing, and the <br />County has ah°eady applied some general obligation bond fiords and other resources to <br />this project, This project is also suitable for installment financing because the financing is <br />for a single real property asset, and this financing can later be combined with a larger <br />installment financing the County has platuied. <br />3. The estimated sums to fall due under the proposed financing contract are <br />adequate and not excessive for the proposed purpose. The County will obtain <br />competitive lending proposals, and will closely review proposed lending rates against <br />