Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 5, 2022 <br /> Action Agenda <br /> Item No. 5-a <br /> SUBJECT: Public Hearing on the Financing of Various Capital Investment Plan Projects <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Resolution Gary Donaldson, (919) 245-2453 <br /> Attachment 2. Copy of Public Hearing Rebecca Crawford, (919) 245-2152 <br /> Notice Robert Jessup, (919) 933-9891 <br /> Attachment 3. PowerPoint Presentation <br /> PURPOSE: To conduct a public hearing on the issuance of approximately $46 Million to finance <br /> capital investment projects and equipment for the fiscal year; and approve a related resolution <br /> supporting the County's application to the Local Government Commission (LGC) for its approval <br /> of the financing arrangements. The financing and transaction costs are included in the loan <br /> amount. <br /> BACKGROUND: County staff estimates that the total amount to be financed for capital <br /> investment projects and equipment will be approximately $46 Million. The statutes require that <br /> the County conduct a public hearing on the proposed financing. A copy of the published notice <br /> for this public hearing is provided (Attachment 2). <br /> The notice of public hearing was advertised in The Herald Sun and the News of Orange. <br /> After conducting the public hearing and receiving public input, the Board will consider the adoption <br /> of the resolution (Attachment 1). This resolution formally requests the required approval from the <br /> North Carolina Local Government Commission (LGC) for the County's financing, and makes <br /> certain findings of fact as required under the LGC's guidelines. County staff has been in contact <br /> with the LGC staff, and staff expects no issues in receiving LGC approval. <br /> The total of the estimated project costs is $43 million, while the requested approval is for a loan <br /> amount not to exceed $46 million. The difference between the two figures covers financing costs. <br /> The $46 million figure was derived while staff was considering financing that would be a public <br /> sale bond offering, instead of the private bank placement now being pursuing. The public sale <br /> offering has higher financing costs, and the means in which bonds are sold to investors can lead <br /> to a higher loan amount even with no higher total cost to the County. The final loan amount will <br /> not exceed the amount the County needs to pay project costs and financing costs. <br />