HomeMy WebLinkAboutC.054.93010_0518 (2)and (b) refinance the outstanding Certificates of Participation (1992 Iredell-Statesville School Project) heretofore
executed and delivered by Iredell County Public Facilities Corporation (the "1992 Certificates"), pursuant to an
installment financing agreement (the "Installment Financing Agreement") with Branch Banking and frust
Company or an affiliate thereof; the County's obligations under the Installment Financing Agreement will be
secured by, among other things, a deed of trust on the Mortgaged Property (as defined in the deed of trust to be
executed by the County as security for its obligations under the Installment Financing Agreement).
(b) The Project is necessary in order to provide modern and expanded facilities essential to the
administration of the government of the County and the public health, safety and welfare of its citizens, and the
County can achieve substantial debt service savings by refunding the 1992 Certificates.
(c) Based on advice from knowledgeable parties as to current tax-exempt interest rates, the sums to fall
due under the Installment Financing Agreement are not excessive for its stated purposes; moreover, the estimated
cost of the Project is not excessive.
(d) The County Attorney has rendered an opinion that the proposed undertakings are authorized by law
and are purposes for which public funds may be expended pursuant to the Constitution and laws of the State of
North Carolina.
(e) The Installment Financing Agreement, under the circumstances presently obtaining, is preferable to
a general obligation bond issue for this purpose. The County's current fund balance is, in light of other
requirements and prudent fiscal management, insufficient to fund the entire cost of the Project, the County does not
have the ability to issue sufficient non -voted bonds for the purposes of the Project under the provisions of Article
V, Sec. 4 of the North Carolina Constitution, and voting general obligation bonds for this purpose will result in
unacceptable delay and additional cost to the County. In addition, the facilities being financed are not eligible tx
revenue bond financing under The State and Local Government Revenue Bond Act.
(f) The estimated cost of financing the Project pursuant to the Installment Financing Agreement
compares reasonably with an estimate of similar cost for general obligation bond financing therefor. The primary
difference in cost results from higher issuance costs, but this amount is insignificant when compared to the total
cost of financing the Project and effecting the refunding of the 1992 Certificates.
(g) The debt management policies of the County have been carried out in strict compliance with law,
including the filing of all required audits and reports with the Local Government Commission, and the County is
within its statutory debt limit and is not in default with respect to any of its outstanding indebtedness.
(h) The County estimates that no increase in the property tax rate would be required to raise sums to
pay the estimated debt service to fall due under the Installment Financing Agreement for all of its stated purposes.
(i) The County has made timely payment of all sums owed by it with respect to the payment of
principal of and interest on all of its outstanding debt obligations and has received no notice from the Local
Government Commission or any holder concerning the County's failure to make any required payment of debt
service.
Section 2. The Local Government Commission is hereby requested to approve the proposed Installment
Financing Agreement pursuant to the provisions of Article 8 of Chapter 159 of the General Statutes of North
Carolina, and the Director of Finance and Administrative Services is directed to complete all applications and
execute all other documents required in connection with obtaining such approval.
Section 3. This resolution shall take effect immediately upon its passage.
M-0-T-10"13.by Commissioner Johnson, seconded by Commissioner Bowles, to approve the
resolution.
VOTING: Ayes - 5; Nays - 0.
OTION by Commissioner Johnson to approve a resolution approving the financing ternis
with Branch Banking and Trust Company in an amount of $10,000,000 with an annual fixed interest rate
of 4.41% and a term of 10 years.
VOTING: Ayes - 5; Nays - 0.
The resolution is as follows.
RESOLUTION APPROVING FINANCING TERMS
WHEREAS: The Iredell County ("County") has previously determined to undertake a project for 2001
Public Facilities Project, and the Finance Officer has now presented a proposal for the financing of such Project.
BE IT THEREFORE RESOLVED, as follows:
1. The county hereby determines to finance the Project through Branch Banking and Trust Company
("BB&T"), in accordance with the proposal dated August 21, 2001. The amount financed shall not
exceed $10,000,000.00, the annual interest rate (in the absence of default or change in tax status) shall
not exceed 4.41% and the financing term shall not exceed ten (10) years from closing.
2. All financing contracts and all related documents for the closing of the financing (the "Financing
Documents") shall be consistent with the foregoing terms. All officers and employees of the County