AG 1995 05 15 - Laserfiche WebLink

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RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 WHEREAS, the Board of Commissioners of Cabarrus County, North Carolina desires to construct a new school, known as Westside Elementary School, (the "Project") to better serve the citizens of Cabarrus County; and WHEREAS, the Board of Commissioners of Cabarrus County desires to finance the Project by the use of an installment contract authorized under North Carolina General Statutes Section 160A-20; and WHEREAS, prior to approval of the proposed contract, the Board of Commissioners of Cabarrus County must make and enter findings of fact regarding the installment contract and present the same to the North Carolina Local Government Commission as a prerequisite enabling the North Carolina Local Government Commission to make its findings of fact, as set forth in North Carolina General Statutes Section 159-15 l(b); NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Cabarrus County, North Carolina, meeting in regular session the 15th day of May, 1995, make the following findings of fact: 1. The proposed contract is necessary or expedient because of critical needs of classroom space due to existing and projected student population increase in Cabarrus County. The proposed contract is preferable to a bond issue for the same purpose because of the favorable interest rates offered through installment contract financing and the very low fixed cost compared to a bond issue. The cost of the proposed undertaking is approximately $10.8 million and with proposed contract financing of $9.9 million exceeds the amount that can be prudently raised from currently available appropriations and unappropriated fund balances. 3. The cost of financing under the proposed contract is believed to be less than the cost of issuing general obligation bonds. 4. The sums to fall due under the contract are adequate and not excessive for the proposed purpose. This school will house 1,000 students with 107,000 square feet of classroom space. The County of Cabarms' debt management procedures and policies are adequate because the County is well below its legal debt margin, and there have been no defaults on debt service payments. The increase in taxes necessary to meet the sums to fall due under the proposed contract will be .0225 cents per $100 valuation and is not deemed to be excessive. 7. The County of Cabarrus is not in default in any of its debt service obligations.