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22 <br /> 1 approve a related Resolution supporting the County's application to the Local Government <br /> 2 Commission (LGC) for its approval of the financing arrangements. <br /> 3 Gary Donaldson, Chief Financial Officer, presented this item: <br /> 4 <br /> 5 BACKGROUND: County staff estimates that the total amount to be financed for capital <br /> 6 investment projects, vehicles and equipment will be approximately $25,600,540 including <br /> 7 financing costs. <br /> 8 <br /> 9 The Statutes require that the County conduct a public hearing on the proposed financing. A <br /> 10 copy of the published notice of this hearing is provided (Attachment 1). <br /> 11 <br /> 12 The notice of public hearing was advertised in The Herald Sun on August 18, 2019 and the <br /> 13 News of Orange on August 21, 2019. <br /> 14 <br /> 15 After conducting the public hearing and receiving public input, the Board will consider the <br /> 16 adoption of the Resolution (Attachment 2). The Resolution formally requests the required <br /> 17 approval from the North Carolina Local Government Commission (LGC) for the County's <br /> 18 financing, and makes certain finding of fact as required under the LGC's guidelines. County staff <br /> 19 has been in contact with the LGC staff, and staff expects no issues with receiving LGC <br /> 20 approval. <br /> 21 <br /> 22 If the Board adopts the Resolution indicating its intent to continue with the financing plan, the <br /> 23 Board will be asked to consider a Resolution giving final approval to the financing plans at its <br /> 24 October 1, 2019 meeting. Under the current schedule, County staff expects to set the final <br /> 25 interest rates and close by the first week in November. <br /> 26 <br /> 27 FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be <br /> 28 a financial impact in proceeding with the financing. A preliminary estimate of maximum debt <br /> 29 service applicable to the capital investment projects and equipment financing would require the <br /> 30 highest debt service payment of$2.1 million in FY 2021-22. The tax rate equivalent for the <br /> 31 estimated highest debt service payment is approximately 1.2 cents. <br /> 32 <br /> 33 Gary Donaldson made the following PowerPoint presentation: <br /> 34 <br /> 35 FY 2019-20 Fall Financing <br /> 36 Limited Obligation Bonds <br /> 37 Gary Donaldson, Chief Financial Officer <br /> 38 September 3, 2019 <br /> 39 <br /> 40 Public Hearing Purpose <br /> 41 ➢ Board Approval for FY 2018-19 Installment Purchase Financing as authorized under <br /> 42 Section 160A-20 of North Carolina General Statutes <br /> 43 ➢ Issuance of approximately $25,600,540 to finance capital improvement projects, vehicles <br /> 44 and equipment <br /> 45 ➢ Approve Resolution supporting Limited Obligation Bond application to the Local <br /> 46 Government Commission <br /> 47 <br /> 48 Limited Obligation Bond Terms <br /> 49 ➢ Security Pledge- Annual Appropriations and County collateral of Southern Campus, <br /> 50 Seymour Center and Northern Campus Site added to Master Deed of Trust <br /> 51 ➢ Maturity Term- 5- 20 Year maturities matches with the useful life of the assets <br />