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