2008 - 06-16-08 Regular Meeting - Laserfiche WebLink

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0 0 BOOK 22 PAGE 173 (f) Entering into the Agreement is preferable to a general obligation bond and revenue bond issue in that (i) the County does not have the constitutional authority to issue non-voted general obligation bonds pursuant to Article V, Section 4 of the North Carolina Constitution because the County has not retired a sufficient amount of debt in the preceding fiscal year to issue a sufficient amount of general obligation bonds for the Project without an election; (ii) the size of the financing does not allow for the issuance of revenue bonds in as economical a manner as entering into the Agreement; (iii) the cost of the Project exceeds the amount to be prudently provided from currently available appropriations and unappropriated fund balances; (iv) the circumstances existing require that funds be available to commence construction of the Project as soon as practicable and the time required for holding an election for the issuance of voted general obligation bonds pursuant to Article V, Section 4 of the North Carolina Constitution and the Local Government Bond Act will delay the commencement of construction of the Project by several months; and (v) there can be no assurances that the Project will be approved by the voters and the necessity of such Project dictates that the Project be financed by a method that assures that such Project will be constructed in an expedient manner. (g) It has been determined by the Board that the cost of financing the Project through an installment financing agreement is reasonably comparable to the costs of issuing general obligation bonds or other available methods of financing and is acceptable to the Board. (h) Counsel to the County will render an opinion to the effect that the proposed undertaking as described above is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of the State of North Carolina. (i) The debt management policies of the County have been carried out in strict compliance with law, and the County is not in default under any obligation for repayment of borrowed money. 0) Any tax rate increase necessary to pay the Installment Payments will be reasonable and not excessive. (k) This financing will qualify as a "qualified zone academy bond" financing with the meaning of Section 1397E of the Internal Revenue Code such that tax credits will be issued by the United States government in lieu of some portion of the interest component of the Installment Payments under the Agreement, and the total financing cost to the County is expected to be less than it would have been under a traditional installment financing arrangement. Section 2. The Board hereby authorizes, ratifies and approves the filing of an application with the Local Government Commission for approval of the Agreement and requests the Local Government Commission to approve of the Agreement and the proposed financing in connection therewith. Section 3. This resolution shall take effect immediately upon its passage. Upon motion of Commissioner d nMA , seconded by Commissioner ,-yet r ~t the foregoing resolution was adopted by the following vote: 4