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22 <br /> <br />b. Public Hearing on the Financing of Various Capital Investment Plan Projects <br />The Board conducted a public hearing on the issuance of approximately $25,600,540 to <br />finance capital investment projects and equipment for the fiscal year; and consider voting to <br />approve a related Resolution supporting the County’s application to the Local Government <br />Commission (LGC) for its approval of the financing arrangements. <br />Gary Donaldson, Chief Financial Officer, presented this item: <br /> <br />BACKGROUND: County staff estimates that the total amount to be financed for capital <br />investment projects, vehicles and equipment will be approximately $25,600,540 including <br />financing costs. <br /> <br />The Statutes require that the County conduct a public hearing on the proposed financing. A <br />copy of the published notice of this hearing is provided (Attachment 1). <br /> <br />The notice of public hearing was advertised in The Herald Sun on August 18, 2019 and the <br />News of Orange on August 21, 2019. <br /> <br />After conducting the public hearing and receiving public input, the Board will consider the <br />adoption of the Resolution (Attachment 2). The Resolution formally requests the required <br />approval from the North Carolina Local Government Commission (LGC) for the County’s <br />financing, and makes certain finding of fact as required under the LGC’s guidelines. County staff <br />has been in contact with the LGC staff, and staff expects no issues with receiving LGC <br />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 />October 1, 2019 meeting. Under the current schedule, County staff expects to set the final <br />interest rates and close by the first week in November. <br /> <br />FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be <br />a financial impact in proceeding with the financing. A preliminary estimate of maximum debt <br />service applicable to the capital investment projects and equipment financing would require the <br />highest debt service payment of $2.1 million in FY 2021-22. The tax rate equivalent for the <br />estimated highest debt service payment is approximately 1.2 cents. <br /> <br />Gary Donaldson made the following PowerPoint presentation: <br /> <br />FY 2019-20 Fall Financing <br />Limited Obligation Bonds <br />Gary Donaldson, Chief Financial Officer <br /> September 3, 2019 <br /> <br />Public Hearing Purpose <br /> Board Approval for FY 2018-19 Installment Purchase Financing as authorized under <br />Section 160A-20 of North Carolina General Statutes <br /> Issuance of approximately $25,600,540 to finance capital improvement projects, vehicles <br />and equipment <br /> Approve Resolution supporting Limited Obligation Bond application to the Local <br />Government Commission <br /> <br />Limited Obligation Bond Terms