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