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9 <br /> 1 <br /> 2 FY 2018-19 Spring Financing <br /> 3 Installment Purchase Agreement <br /> 4 Gary Donaldson, Chief Financial Officer <br /> 5 March 19, 2019 <br /> 6 <br /> 7 Public Hearing Purpose <br /> 8 ➢ Board Approval for FY 2018-19 Installment Purchase Financing as authorized under <br /> 9 Section 160A-20 of North Carolina General Statutes <br /> 10 ➢ Issuance of approximately $25,985,000 to finance capital improvement projects, <br /> 11 vehicles and equipment <br /> 12 ➢ Approve Resolution supporting Installment Purchase application to the Local <br /> 13 Government Commission <br /> 14 <br /> 15 Installment Purchase Terms <br /> 16 ➢ Security Pledge- County collateral of Southern Campus and the Meadowlands <br /> 17 emergency operations buildings <br /> 18 ➢ Maturity Term- 5- 20 Year maturities matches with the useful life of the assets <br /> 19 ➢ Estimated Interest Rates- 3%-4% subject to market conditions <br /> 20 ➢ Source of Repayment- Property Tax, Article 46 Sales Tax (for Hillsborough EDD Utility) <br /> 21 and Solid Waste Fees (for Vehicles and Equipment) <br /> 22 ➢ Subordinate Lien to General Obligation Bonds <br /> 23 ➢ Current and Projected Ratings- AA1/AA+/AA+ from Moody's, Standard & Poor's and <br /> 24 Fitch Ratings <br /> 25 ➢ LGC Approval required <br /> 26 <br /> 27 List of Projects to be Financed (chart) <br /> 28 <br /> 29 Financing Calendar <br /> 30 Key Dates Task <br /> 31 March 3rd and 61h Public Hearing Notice Advertisement in Herald-Sun and News of <br /> 32 Orange <br /> 33 March 191h Public Hearing and Board Action Adopting Resolution supporting <br /> 34 LGC application <br /> 35 April 15th — 30th County submits LGC application and credit reviews <br /> 36 May 2nd Board action adopting final resolution and financial terms <br /> 37 May 7th LGC approves installment purchase financing <br /> 38 Week of May 27th Installment purchase closing <br /> 39 <br /> 40 Questions/Comments <br /> 41 <br /> 42 Bob Jessup said he is here to answer any questions. <br /> 43 Commissioner Dorosin said the Board will be approving a Capital Investment Plan <br /> 44 (CIP) as part of the upcoming budget, and asked if these projects are from past CIPs. <br /> 45 Gary Donaldson said yes. <br /> 46 Commissioner Dorosin clarified that the projects coming off the list will be placed on a <br /> 47 new list in the fall. <br /> 48 Gary Donaldson said yes, and once the GMP comes before the Board in the fall, staff <br /> 49 will present that to the LGC at its October meeting. <br /> 50 Commissioner Dorosin asked if there will be two separate financings sent to the LGC. <br /> 51 Gary Donaldson said yes. <br />