HomeMy WebLinkAboutC.054.93010_1230 (2)compares reasonably and favorably 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 refinancing such payment obligations.
(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 (the "LGC"), 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 will 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 LGC or any holder concerning the
County's failure to make any required payment of debt service.
Section 2. The LGC 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 Administration is
directed to complete all applications and execute all documents required in connection
with obtaining such approval.
Section 3. The LGC is hereby requested to approve the selection of the
following professionals who comprise the financing team, and such other professionals
as may be required or useful and acceptable to the LGC, to assist the County in
connection with such financing:
Special Counsel Sidley Austin Brown & Wood LLP
Underwriters Legg Mason Wood Walker, Incorporated
Citigroup Global Markets Inc.
Underwriters' Counsel Womble Carlyle Sandridge & Rice, PLLC
Trustee First -Citizens Bank & Trust Company
Corporation Counsel Wyrick Robbins Yates & Penton LLP
Section 4. All actions heretofore taken by the Director of Finance and
Administration in connection with the Installment Financing Agreement and the 2003
Certificates, including filing the application with the LGC, retaining Special Counsel
and selecting investment bankers and a trustee, are hereby ratified and confirmed.
Section 5. This resolution shall take effect immediately upon its passage.
Attorney Pope said the financing was similar to others in the past. He said the
transaction would involve the school systems transferring property titles to the county
due to the educational facilities being pledged as collateral. He said the county would
commit to making installment payments to the public facility's corporation and secure
its promise by pledging a lien on the school properties. Pope said the school properties
were the only recourse for the bond holders, and the faith and credit of the county was
not being pledged. He also said the county's taxing authority would not be pledged.
Mr. Pope said there was a requirement for the county budget to include an amount to
amortize the debt (variable bonds) for the coming year plus two percent. Pope said this
type of indebtedness did not count against the county's obligation limit required by the
legislature. Mr. Pope said he would send a copy of the Preliminary Official Statement
(POS) to each commissioner.
Chairman Johnson said he understood the only way the $47 million might be
reduced was if the refinancing did not occur at this time
Mrs. Blumenstein said this was correct. She said that if an acceptable interest
rate could not be achieved for the refinancing, this part of the transaction would be
eliminated.
No one else desired to speak, and Chairman Johnson adjourned the public
hearing.