Agenda 09-17-19 Item 5-a - Public Hearing on Refinancing Existing Loan Obligations

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RES-2019-057 Attachment 2 5 s*h draft of August 26 Resolution supporting an application to the Local Government Commission for its approval of a County financing agreement for the refinancing of existing loans WHEREAS-- The County has determined that it can save money by refinancing some of its existing installment contracts, general obligation bonds and other loans. The refinancings will save the County money without extending the terms of the existing loans. The County desires to carry out this refinancing using a single new installment financing contract, as authorized under Section 160A-20 of the North Carolina General Statutes. The County expects the refinancings will be combined into a single County financing contract with another County financing for new public assets and improvements. Under the guidelines of the North Carolina Local Government Commission, this governing body must make certain findings of fact to support the County's application for the LGC's approval of the County's financing arrangements. THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, that the County makes a preliminary determination to finance approximately $24,000,000 to refinance existing obligations. The County requests that the LGC approve the County's application for this new financing. The Board will determine the final amount to be financed by a later resolution. The final amount financed may be slightly lower or slightly higher than $24,000,000. Some of the financing proceeds may be used to pay financing expenses or to provide any required reserves. The Board will also determine the collateral for the financing by a subsequent resolution. The County expects that the collateral for the financing will include property in the County's planned "northern campus" off Highway 70 just north of Hillsborough (including the site of the planned new jail) and portions of the