Laserfiche WebLink
399 <br /> <br />Coverage for Additional <br /> Parity Debt: <br /> <br />Non-Tax Revenue Pledge: <br /> <br />Call Features: <br /> <br />1.5 times Annual Lease <br />Obligation or approximately <br />$1,828,000 <br />The County would agree to pledge <br />Inspection, Recording of Legal <br />Instruments, Cabarrus Memorial <br />Hospital Reimbursement for Deputy <br />services provided, District Court <br />fees, Mt. Pleasant Reimbursement <br />for Deputy Services provided, <br />Ambulance Collections, Landfill and <br />Cable Franchise Fees. <br />The lease would not be prepayable in <br />years 1-3 but would be <br />prepayable with a declining penalty <br />in year 4-6 and at par during the <br />remaining four years. <br /> <br />Rate effective until 5:00 p.m. on Tuesday, May 3, 1988 and if accepted <br />must be closed by 5:00 p.m. on Friday, June 10, 1988. Also, rate <br />subject to a tax-exempt legal opinion. <br /> <br />Small Issuer Exemption: <br /> <br />Additional Pledge: <br /> <br />The County would certify that <br />it will not issue more than $10mm <br />in debt or obligations during the <br />calendar year (1988). <br />The County would agree to pledge <br />additional non-tax revenue if the <br />coverage falls below the required <br />level. <br /> <br />Under the terms of our proposal the lease would not be prepayable for the <br />first three years but it would be prepayable with a declining penalty in <br />years 4-6 and at par during the remaining four years. A lease payment <br />schedule will be included in the lease agreement which will specify the <br />prepayment penalties in years 4-6 and the principal and interest component of <br />each lease payment. <br /> <br />A portion of each lease payment (the principal component) would be applied <br />toward the purchase of the facility and thus the lease is known as a lease <br />with an option to purchase which would be treated as a financing lease for <br />federal tax purposes. <br /> <br />It is understood that the lease will be secured through non-tax revenues of <br />the County and will not be reliant upon annual appropriations. The initial <br />coverage ratio would be 1.23 times the annual lease obligation or approxi- <br />mately $1,500,000 per year. This ration will increase to 1.25 as of July 1, <br />1988. Additional coverage ratio for parity debt would be 1.5 times the <br />annual lease obligation or approximately $1,828,000 per year. <br /> <br />The Lessee and Lessor will execute an agency agreement which shall specify <br />their roles in the various phases of the lease including construction, <br />acquisition, installation and equipping of the administrative complex. The <br />title of the administrative complex and interest therein will be held in <br />Wachovia's name until all obligations of the lease agreement are fulfilled. <br /> <br />The County would be required to certify by obtaining a tax opinion from a <br />nationally recognized legal firm that this is a tax-exempt financing and that <br />they would take no action during the term of the lease that would adversely <br />affect the status of the financing. Also, the lease agreement would address <br />the occurrence for an event of taxability should the interest components <br />become subject to federal income taxation by the Lessor due to statutory <br />changes in the tax law and/or adverse actions by the Lessee. In effect the <br />underlying rate on the lease would be adjusted to a taxable level and <br />reflected in the lease payments. <br /> <br />e:raglll.jdh <br /> <br /> <br />