AGENDA #2.2b

 

RESOLUTION A

 

A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 (2004-03-22/R-1)

 

WHEREAS, the Town of Chapel Hill, North Carolina desires to finance major renovations for the Inter-Faith Council Building (IFC), roof repairs for Town Hall, Fire Station #2, Fire Station #3, and the Chapel Hill Museum, and renovations to various Town tennis and basketball courts in an amount not to exceed $1,050,000 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 22nd day of March 2004, makes the following findings of fact;

 

l. .       The proposed contract is necessary and expedient in order to:  take advantage of an opportunity to complete the major exterior repairs to the Inter-Faith Council Building (IFC); replace roofs at Town Hall, Fire Station #2, Fire Station #3, and the Chapel Hill Museum; and resurface various Town tennis and basketball courts (the “Project”) 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 renovations promptly, and the amount of up to $1,050,000 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 .3 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.

 

NOW, THEREFORE, 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 22nd day of March, 2004.