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8 <br /> <br />The Board conducted a public hearing on the issuance of approximately $8,150,000 to 1 <br />finance capital investment projects and equipment for the fiscal year; and approve a related 2 <br />resolution supporting the County’s application to the Local Government Commission (LGC) for 3 <br />its approval of the financing arrangements. 4 <br /> Gary Donaldson, Chief Financial Officer, reviewed the information below: 5 <br /> 6 <br />BACKGROUND: 7 <br />County staff estimates that the total amount to be financed for capital investment projects and 8 <br />equipment will be approximately $8,150,000. The financing and transaction costs are included 9 <br />in the loan amount. 10 <br />The North Carolina General Statutes require that the County conduct a public hearing on the 11 <br />proposed financing. The notice of public hearing was advertised in The Herald Sun and the 12 <br />News of Orange. A copy of the published notice is provided at Attachment 1. Since the actual 13 <br />public advertisement, the project name for the Environmental Agricultural Center has been 14 <br />changed to the Northern Campus site acquisition and an additional $60,000 has been added to 15 <br />the 911 Center Improvements, these represent the only changes from the actual public 16 <br />advertisement. 17 <br /> 18 <br />After conducting the public hearing and receiving public input, the Board will consider the 19 <br />adoption of a resolution (Attachment 2). This resolution formally requests the required approval 20 <br />from the North Carolina Local Government Commission (LGC) for the County’s financing, and 21 <br />makes certain finding of fact as required under the LGC’s guidelines. County staff has been in 22 <br />contact with the LGC staff, and staff expects no issues with receiving LGC approval. 23 <br /> 24 <br />If the Board adopts the resolution indicating its intent to continue with the financing plan, the 25 <br />Board will be asked to consider a resolution giving final approval to the financing plans at its 26 <br />June 5, 2018 meeting. Under the current schedule, County staff expects to set the final interest 27 <br />rates and close on the financing by the end of June 2018. 28 <br /> 29 <br />FINANCIAL IMPACT: There is no financial impact related to conducting the public hearing and 30 <br />approval of the resolution. However, there will be a financial impact in proceeding with the 31 <br />financing. A preliminary estimate of maximum debt service applicable to the capital investment 32 <br />projects and equipment financing would require the highest debt service payment of $1.2 million 33 <br />in FY 2019-20. The tax rate equivalent for the estimated highest debt service payment is 34 <br />approximately .67 cent. 35 <br /> 36 <br />Commissioner McKee asked if this money is for the current Agricultural building. 37 <br />Gary Donaldson said no, it is for the new northern campus. 38 <br /> 39 <br />A motion was made by Commissioner Price, seconded by Commissioner Rich to open 40 <br />the public hearing, 41 <br /> 42 <br />VOTE: UNANIMOUS 43 <br /> 44 <br /> A motion was made by Commissioner Price, seconded by Commissioner McKee to 45 <br />close the public hearing. 46 <br /> 47 <br />VOTE: UNANIMOUS 48 <br /> 49