HomeMy WebLinkAboutC.054.93010_0971Section 1. The Board of Commissioners does hereby find, determine and declare
as follows:
(a) The County of Iredell, North Carolina (the "County") proposes to finance
the refunding of $6,720,000 Certificates of Participation (1992 Iredell-Statesville Schools
Projects) (the "1992 Certificates") executed and delivered by Iredell County Public
Facilities Corporation (the "Corporation"), pursuant to an installment financing
agreement (the "Installment Financing Agreement") with the Corporation under which
the Corporation will finance the refunding of the 1992 Certificates, and the County will
make Installment Payments (as defined in the Installment Financing Agreement) in
amounts sufficient to pay the principal of and interest on the Installment Payment
Revenue Refunding Bond (Iredell County School Projects), Series 2002 (the "2002
Bond"), to be issued and sold by the Corporation to refund the 1992 Certificates, it being
the express intention of the Board of Commissioners that only the principal amount of the
2002 Bond necessary to accomplish the purposes stated in the Installment Financing
Agreement will be issued (estimated not to exceed $6,000,000 principal amount).
(b) Based on advice from the County's financial advisor as to current tax-
exempt interest rates, the sums to fall due under the Installment Financing Agreement are
not excessive for its stated purpose.
(c) 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.
(d) 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 refund the 1992 Certificates, 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 purposes of refunding the 1992 Certificates, and voting general
obligation bonds for this purpose will result in unacceptable delay and additional cost to
the County.
(e) The estimated cost of refunding the 1992 Certificates pursuant to the
Installment Financing Agreement compares favorably with an estimate of similar cost for
general obligation bond financing therefor.
(f) 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.
(g) 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 its stated purpose.
(h) 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
Administration is directed to complete and file all applications and execute all other
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 and the 2002
Bond, including retaining bond counsel, selecting a financial advisor and a trustee and
soliciting proposals from banks for the direct placement of the 2002 Bond, are hereby
ratified and confirmed.
Section 4. This resolution shall take effect immediately upon its passage.
Upon a olio of Commissioner Johnson, seconded by Commissioner Williams,
the foregoing resolution was passed by the following vote:
Ayes: Commissioners Sara Haire Tice, Karen B. Ray, Tommy E. Bowles, Steve
D. Johnson, and R. Godfrey Williams.
Noes: 0