Orange County NC Website
Browse       Search
14 <br /> 1 Chair Bedford asked if there is a recommended change in funding for the Chapel Hill <br /> 2 Library. <br /> 3 Bonnie Hammersley said there was no recommended change. <br /> 4 Chair Bedford said the public hearing on the budget will be next Tuesday at the Whitted <br /> 5 Building at 7:00 pm, and encouraged residents to attend. <br /> 6 <br /> 7 <br /> 8 5. Public Hearings <br /> 9 a. Public Hearing on the Financing of Various Capital Investment Plan Projects <br /> 10 The Board conducted a public hearing on a financing contract for up to $16.5 million to pay for <br /> 11 capital investment projects and equipment for the fiscal year, and considered approving a related <br /> 12 resolution supporting the County's application to the Local Government Commission (LGC)for its <br /> 13 approval of the financing arrangements. <br /> 14 <br /> 15 BACKGROUND: County staff estimates that the total amount to be financed for capital <br /> 16 investment projects and equipment will be not exceed $16.5 million. The law requires that the <br /> 17 County conduct a public hearing on the proposed financing. A copy of the published hearing <br /> 18 notice is provided at Attachment 1. <br /> 19 <br /> 20 The notice of public hearing was advertised in The Herald Sun. <br /> 21 <br /> 22 After conducting the public hearing and receiving public input, the Board will consider the adoption <br /> 23 of the resolution (Attachment 2). This resolution formally requests the required LGC approval, <br /> 24 makes certain "finding of fact" as required under the LGC's guidelines, and authorizes County <br /> 25 staff to continue the process. The Finance Officer has been in contact with the LGC staff, and <br /> 26 expects no issues in receiving LGC approval. <br /> 27 <br /> 28 If the Board adopts the resolution indicating its intent to continue with the financing plan, the Board <br /> 29 will be asked to consider a resolution giving final approval to the financing plans at its Business <br /> 30 meeting on May 16, 2023. Under the current schedule, County staff expects to set the final interest <br /> 31 rates and close by the end of June. <br /> 32 <br /> 33 Collateral: For this type of County installment financing, the County secures its obligations to the <br /> 34 lender by a mortgage-type interest in some or all of the property being acquired or improved <br /> 35 through the financing. The County plans to secure this 2023 financing through a pledge of several <br /> 36 school properties. County staff is discussing with both school boards the particular schools to be <br /> 37 used. The school boards will convey the selected schools to the County for the financing term so <br /> 38 that the County can utilize them as collateral. The Board will be asked to approve the transfer of <br /> 39 the particular schools as part of a May 16, 2023 Business meeting agenda item. <br /> 40 <br /> 41 Lenders generally require that the County offer collateral equal to at least 50%of the loan amount. <br /> 42 The County expects to offer collateral well in excess of the loan amount, but transferring schools <br /> 43 to the County now will facilitate future school improvements and financings over the next several <br /> 44 years. The County has flexibility to release schools individually from the financing lien if that <br /> 45 becomes appropriate. <br /> 46 <br /> 47 Gary Donaldson, Chief Financial Officer, made the following presentation: <br /> 48 <br /> 49 <br />