HomeMy WebLinkAboutC.054.93010_0581Agreement") with HMA; 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) Purchase of the aforementioned property 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.
(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
said property is not excessive.
(d) The County Attorney has rendered an opinion that the proposed
undertaking 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.
(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 said
property, the County does not have the ability to issue sufficient non-voted
bonds to purchase said property 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 for revenue bond
financing under The State and Local Government Revenue Bond Act.
(f)lhe 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 slightly higher issuance costs. but this amount is insignificant
when compared to the total cost of financing the purchase of said property
(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