A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 (2006-12-04/R-2a)

WHEREAS, the Town of Chapel Hill, North Carolina desires to finance a portion of major renovations for the Community Center and a portion of the construction costs of the Aquatics Center for $1.75 million and $1.35 million, respectively for a total of $3.1 million to better serve the citizens of the Town; and

WHEREAS, the Town desires to finance the Project by the use of an installment contract authorized under North Carolina General Statute Chapter 160A, Article 3, Section 20; and

WHEREAS, findings of fact by the governing body must be presented to enable the North Carolina Local Government Commission to make its findings of fact set forth in North Carolina General Statute Chapter 159, Article 8, Section 151 prior to approval of the proposed contract;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council, meeting in a regular session on the 4th day of December 2006, makes the following findings of fact;

1. The proposed contract is necessary and expedient in order to take advantage of an opportunity to complete the major repairs to the Community Center and the construction of the Aquatics Center in a timely manner.
2. The proposed contract is preferable to a bond issue for the same purpose because timing is of the essence in order to begin the repairs and construction promptly, and the amount of $3.1 million is more than can be prudently raised from currently available appropriations, unappropriated fund balances, and non-voted bonds in a timely manner.
3. The cost of financing under the proposed contract is expected to be approximately the same as the cost of issuing general obligation bonds.
4. The sums to fall due under the contract are found to be adequate and not excessive for the proposed purpose.
5. The debt management policies of the Town are found to have been carried out in strict compliance with applicable law and will be continued in the future.
6. The increase in taxes necessary to meet the sums to fall due under the anticipated contract is estimated to be less than .86 cents per $100 valuation and is not deemed to be excessive.
7. The Town is not in default in any of its debt service obligations.
8. The attorney for the Town has rendered an opinion that the proposed 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.

BE IT FURTHER RESOLVED that the filing of an application on behalf of the Town by the Manager, Finance Director, and Attorney with the North Carolina Local Government Commission for approval of the project and the execution of the proposed financing contract and the taking of other actions to proceed with the project not inconsistent with this resolution are hereby authorized, ratified and approved.

This the 4th day of December, 2006.