HomeMy WebLinkAboutC.054.93011_1052Facilities Corporation (the "Corporation") and the County will make Installment
Payments (as defined in the Installment Financing Agreement) in amounts sufficient to
pay the principal and interest with respect to the Certificates of Participation (Iredell
County School Projects), Series 2006 (the "2006 Certificates') to be executed and
delivered by the Corporation to finance the Project, it being the express intention of the
Board of Commissioners that only the principal amount of 2006 Certificates necessary
to accomplish the purposes stated in the Installment Financing Agreement will be
executed and delivered (estimated not to exceed $47,000,000).
(b) The Project is necessary in order to provide public school facilities
essential to the public health, safety and welfare of the citizens of the County.
(c) Based on advice from the County's investment bankers 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 the Project is
not excessive.
(d) Counsel to the County has rendered an opinion that the proposed
undertakings are authorized by law and are purposes 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 Iight of other requirements and prudent fiscal
management, insufficient to fund the entire cost of the Project, 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 financing the Project, and
voting general obligation bonds for this 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. 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.
(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 Administrative
Services of the County 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 Wachovia Bank, National Association (Senior
Manager) and Banc of America Securities LLC
Underwriters' Counsel Womble Carlyle Sandridge & Rice, PLLC
Trustee Deutsche Bank National Trust Company
Corporation Counsel Wyrick Robbins Yates & Ponton
Section 4. All actions heretofore taken by the County Manager and the Director
of Finance and Administrative Services in connection with the Installment Financing
Agreement and the 2006 Certificates, including filing the application with the LGC,