Orange County NC Website
Browse       Search
13 <br /> a. Adoption of the Final Financing Resolution Authorizing the Issuance of <br /> $16,950,000 in Installment Purchase Financing for Various Capital Investment Plan <br /> Projects <br /> The Board considered voting to adopt the final financing resolution authorizing the <br /> issuance of approximately $16,950,000 in installment financing to finance capital investment <br /> projects and equipment for the fiscal year, and including amounts to pay transaction costs. <br /> BACKGROUND: <br /> At the March 19, 2019 meeting, the Board of County Commissioners received preliminary <br /> information of capital projects and equipment financing for the year. At that meeting, the Board <br /> made a preliminary determination to finance costs of these projects and equipment by the use <br /> of an installment financing, as authorized under Section 160A-20 of the North Carolina General <br /> Statutes. The financing will also include amounts to pay transaction costs. <br /> The Statutes require that the County conduct a public hearing on the proposed financing and <br /> refinancing contracts. The County conducted a public hearing at the March 19, 2019 meeting, <br /> and adopted the resolution supporting the application to the Local Government Commission <br /> (LGC) for approval of the financing. County staff has been in contact with the LGC staff, and <br /> staff expects no issues with receiving LGC approval. <br /> If the Board adopts the final financial resolution authorizing final approval to the financing at <br /> tonight's meeting, staff expects the LGC to approve the financing plan at the LGC's meeting on <br /> May 7, 2019. Under the current schedule, staff expects to set the final interest rates and other <br /> terms of the financing in April 2016, and to close on the financing the week of May 27th. It is <br /> requested that the Board approve a financing amount not to exceed $16,950,000 and a <br /> maximum interest rate of 4.00%. The 55-page Draft Preliminary Official Statement is available <br /> upon request from the County's Finance and Administrative Services staff. <br /> FINANCIAL IMPACT: There will be a financial impact in proceeding with the financing. At <br /> current rates, preliminary estimates of maximum debt service applicable to the capital <br /> investment projects and equipment financing would require the highest debt service payment of <br /> $1.7 Million in FY 2021. A portion of this debt financing is related to projects where the debt <br /> service payments will be paid from Article 46 Sales Tax and Solid Waste Program Fees. <br /> Gary Donaldson made the following PowerPoint presentation: <br /> Series 2019A Limited Obligation Bonds <br /> Final Financing Resolution <br /> Gary Donaldson, Chief Financial Officer <br /> May 2, 2019 <br /> Purpose: <br /> ➢ Limited Obligation Bonds pursuant to NC Statute Section 160A-20 <br /> ➢ Payments for the Limited Obligation Bonds, Series 2019A will be made to Trustee by <br /> March 25 (for April 1 debt service) and by September 25 (for October 1 debt service); <br /> estimated interest rate not to exceed 4% <br /> ➢ The Series 2019A Limited Obligation Bonds are secured by a Deed of Trust, with a <br /> security interest in various County buildings and land with a total collateral value <br /> estimated at $15.7 million <br />