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December 28, 2004 (Recessed Meeting) Page 44 (4) Msolution Authorizing the Filing of all Application for Approval of a Financing Agreement Authorized by North Carolina General Statute 160A-20 Ms. Dubois reported funds were needed to purchase the property for the Law Enforcement Center as the Certificates of Participation (COPS) cannot be issued until a purchase contract is completed. Due to limited funds available in Fund Balance and the Capital Reserve Fund, she asked for authorization to initiate short-term borrowing for the purchase of the land. She said it was her intention to payoff the land financing once the COPS funding is issued. Ms. Dubois explained the financing would not occur until the exact number of parcels to be acquired and purchaSe price has been determined by the Board. UPON MOTION of Vice Chairman Carruth, seconded by Commissioner Juba and unanimously carried, the Board adopted the following Resolution Authorizing the Filing of an Application for Approval of a Financing Agreement Authorized by North Carolina General Statute 160A-20, subject to review by the County Attorney. Resolution No. 2004-49 RESOLUTION AUTHOkIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 WHERE~S, the Board of Commissioners of Cabarrus County, North Carolina desires to purchase land for the construction of a Law Enforcement Center, (the "Project"), to better serve the citizens of Cabarrus County; and WHEREAS, the Board of Commissioners of Cabarrus County desires to finance the proj ect 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 1S9-1S1(b); NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Cabarrus County, North Carolina, meeting in regular recessed session the 28th day of December, 2004, make the following findings of fact: 1. The proposed contract is necessary or expedient because of critical needs of overcrowding at our current Law Enforcement Facility. 2. 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 will range from $2.0 million to not exceed $6.0 million. 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. S. The County of Cabarrus' 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. 6. The increase in taxes ~ecessary to meet the sums to fall due under the proposed contract will be less than .01 cent 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. 8. The attorney for the County of Cabarrus has rendered an opinion that the proposed proj ect is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Finance Director is hereby authorized to act on behalf of the County of Cabarrus in filing an application with the North Carolina Local Government Commission for approval of the Project and the proposed financing contract and other actions not inconsistent with this resolution. This resolution is effective upon its adoption this 28th day of December, 2004.