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4. The County Attorney has rendered an opinion that the
project is authorized by law and is a purpose for which public
funds may be expended pursuant to the Constitution and laws of
North Carolina at this time.
5. The proposed installment contract is preferable to
alternative financing mechanisms because the costs of authorizing
and issuing general obligation bonds would be greater than those
associated with the installment contract and revenue bonds are
inappropriate for this project. In addition, the current
appropriations in the County's General Fund are inadequate to
retire the entire principal balance of existing debt at this time,
and Iredell County does not retire enough debt annually to fund
this project using the "two-thirds limitations" rule.
6. After receiving competitive bids for refinancing the
outstanding principal debt, the Board of Commissioners has chosen,
upon Local Government Commission approval, to refinance the debt
with First Union National Bank at an interest rate of 4.49% and a
term of 7.25 years. The total cost of the refinancing agreement is
$2,988,885.58, including principal and interest, a savings of
$587,000 over existing financing.
7. Examination of the audited financial statement for the
past three fiscal years of Iredell County will show that the
County's debt management policies are in strict compliance with
North Carolina law.
S. No increase in the property tax rate will be necessary to
raise sums to fall due under this contract in each fiscal year
during the term of the contract. Funding for the debt service
payments will be through annual appropriation in the operating
budget for the General Fund.
9. The County is neither in default nor has it ever been in
default in meeting its debt service obligations.
10. The Board of County Commissioners hereby directs the
Director of Finance and Administrative Services to file an
application with the Local Government Commission for the project as
described.
This the 20th day of February 1996.
(s) Sara K. Haire, Chairman
IREDELL COUNTY BOARD OF COMMISSIONERS
VOTING: Ayes - 5; Nays - 0.
REQUEST TO EXTEND BANKING SERVICE BID WITH FIRST CITIZENS BANK
i TRUST THROUGH JUNE 30, 19971 Mrs. Blumenstein desires to extend
this contract for one more year. A new financial software package
will be implemented in the finance office in July, and Blumenstein
prefers to remain with First Citizens to eliminate any potential
banking changeover problems that might occur. First Citizens is
willing to extend the service with a compensating balance of
$390,000 (current contract for compensating balance is $410,000)
and lockbox services are to be billed separately at $.15 per item
(same as current contract).
MOTION by Commissioner Madison to extend the banking service
bid with First Citizens Bank.
VOTING: Ayes - 5; Nays - 0.
REQUEST FOR APPROVAL OF BUDGET ANENDHENT /21 TO ALLOCATE
RESTRICTED SALES TAXES RECEIVED FOR PY 1994/95 IN EXCESS OP AMOUNT
BUDGETED FOR SCHOOL CAPITALI MOTION by Commissioner Johnson to
approve Budget Amendment #21 which changes line item 10-339-00 by