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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 3, 2022 <br /> Action Agenda <br /> Item No. 8-j <br /> SUBJECT: Adoption of the Final Financing Resolution Authorizing the Issuance of <br /> Installment Purchase Financing for Various Capital Investment Plan Projects <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1 . Resolution Approving Gary Donaldson, (919) 245-2453 <br /> Financing Terms and Rebecca Crawford, (919) 245-2152 <br /> Documents for 2022 Robert Jessup, (919) 933-9891 <br /> Installment Financing <br /> Attachment 2. Deed of Trust <br /> Attachment 3. Trust Agreement <br /> PURPOSE: To adopt the final financing resolution authorizing the issuance of up to $43,000,000 <br /> in installment financing to finance capital investment projects and equipment for the fiscal year. <br /> The financing will also include amounts to pay transaction costs. <br /> BACKGROUND: At the April 5, 2022 Business meeting, the Board of County Commissioners <br /> conducted a public hearing and was provided preliminary information of capital projects and <br /> equipment financing and refinancing existing debt obligations. The Board made a preliminary <br /> determination to finance costs of these projects and equipment, and financing costs by the use of <br /> an installment financing, as authorized under Section 160A-20 of the North Carolina General <br /> Statutes. <br /> With the resolution, the Board will be giving final approval for the financing. It substantially <br /> approves the final financing documents, and authorizes staff to complete the closing. Staff <br /> anticipates receiving the required approval of the Local Government Commission on the afternoon <br /> of May 3, and then closing the financing by mid-May. Between now and then, staff will work with <br /> the lender and other financing team members to confirm final details of the funding and County <br /> payment arrangements so staff can address the remaining blanks in the documents. This process <br /> is consistent with past practice. <br /> FINANCIAL IMPACT: A preliminary estimate of maximum debt service applicable to the capital <br /> investment projects and equipment financing would require the highest debt service payment of <br /> $4.14 million in FY 2024 (based on current market interest rates). The tax rate equivalent for the <br /> estimated highest debt service payment is approximately $0.0193 (1.93 cents). <br />