1989 - 09-05-89 Regular Meeting - Laserfiche WebLink

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895 BObK ~2 PACE Agreement for Lee ~Sunty Resource Center. Commissioner Dossenbach moved adoption of the following resolution: WHEREAS, the County of Lee and the State of North Carolina have deemed it appropriate to expend approximately $3,000,000 to construct a Community Resource Center near the Central Carolina Community College, and WHEREAS, the County proposes to finance its obligation of $2,000,000 for this project through an installment purchase contract, and WHEREAS, the payments under the proposed installment purchase contract are not excessive for the stated purpose of constructing the Community Resource Center, and WHEREAS, the North Carolina General Legislature enacted into law effective August 1, 1989, an amendment to N.C.G.S. Section 160A-20, authorizing Counties to purchase or finance the purchase of real or personal property by installment contracts that create in the property purchased a security interest to secure payments of the purchase price to the seller or lender advancing or supplying financing for the purchase transaction and further authorizing counties to finance the construction of fixtures and improvements by creating in the fixtures or improvements a security interest to secure repayment of moneys advanced for such construction, and WHEREAS, the County Attorney is of the opinion that this transaction is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina, and WHEREAS, the cost of continuing the current debt payment schedule for the construction cost of the Community Resource Center amounts to approximately 9% (nine percent) of the budget for the County's General Fund for the fiscal year ending June 30, 1990, and the Commission deems this too great an amount to be funded by current appropriations or appropriation of fund balance, and WHEREAS, the interest rate on such financing is comparable to the rates which would be incurred in a bond issuance and, since the fees incurred in any bond issuance are avoided in a lease-purchasing transaction, this financing vehicle should prove less expensive for the County, and WHEREAS, past audit reports indicate that debt management policies have been carried out in compliance with the law, and WHEREAS, payment of the amounts due under terms discussed with various financing agencies will not require an increase in the tax rate during any year during which repayments are being 4