HomeMy WebLinkAboutC.054.93011_0395 (2)(e) The Installment Financing Agreement, under the circumstances presently
obtaining, is preferable to a general obligation bond issue for this purpose. The County
does not have the ability to issue sufficient non -voted bonds under the provisions of
Article V, Sec. 4 of the North Carolina Constitution for the purpose of financing the
Project, and voting general obligation bonds for such purpose will result in
unacceptable delay and additional cost to the County.
(f) The estimated cost of financing the Project pursuant to the Installment
Financing Agreement compares reasonably and favorably with an estimate of similar
cost for general obligation bond financing therefor.
(g) The debt management policies of the County have been carred 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.
(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. All actions heretofore taken by the Director of Finance and
Administration in connection with the Installment Financing Agreement are hereby
ratified and confirmed.
Section 4. This resolution shall take effect immediately upon its passage.
Chairman Johnson adjourned the hearing.
Upon olio of Commissioner Tice, the foregoing resolution entitled:
"RESOLUTION MAKING CERTAIN FINDINGS RELATING TO THE
FINANCING, PURSUANT TO AN INSTALLMENT FINANCING AGREEMENT,
OF THE CONSTRUCTION, EQUIPPING AND FURNISHING OF A BUILDING
FOR USE BY THE COUNTY'S DEPARTMENT OF SOCIAL SERVICES AND
AUTHORIZING THE DIRECTOR OF FINANCE AND ADMINISTRATION TO
FILE APPLICATION FOR APPROVAL THEREOF WITH THE LOCAL
GOVERNMENT COMMISSION" was passed by the following vote:
Ayes: Commissioners Johnson, Williams, Madison, Norman, and Tice.
Noes: 0
Request for Approval of a DSS Financing Proposal from Bank of America:
Finance Director Blumenstein stated that banking proposals were received on
August 27, 2004 to finance the new social services building. She said eight institutions
were sent proposal requests and five responded. Blumenstein said Bank of America had
the lowest interest rate (3.599% - fixed for 15 years), and she recommended that it be
awarded the financing. A summary of all proposals is as follows:
RFPs sent to:
Fixed Rate
Pepay
Ong
Fees/Closing
Total Repayment
Penalty
Fee
Costs (Bank)
(including costs
Bank of America
3.599%
5% Yl -Y3;
None
$5,500 est.
$9,049,797
360 day
4% 4-6; 3%
7-9; 2% 10-
12;1% 13-15
BB&T Gov. Finance
3.83%
.5% anytime
None
$7,900 est.
$9,153,926
360 da
Community Bank
No bid
First Citizens Bank 7TNOW