Alamance County
NC

Action Item
2020-27

Reimbursement Resolution - ACC Bond Projects

Information

Department:County ManagerSponsors:
Category:Resolution

Issue/Action Requested

Approval is requested for a bond reimbursement resolution for initial design costs and architect costs for Alamance Community College construction projects with the expectation that the County will be reimbursed from proceeds of the first bond issuance.   

 

Background/Purpose of Request

On November 6, 2018, the voters of Alamance County approved a bond referendum in the amount of $39.6 million for multiple renovation and construction projects for the Alamance Community College.   Since bonds may only be issued once the construction projects have firm prices, those bond funds are not readily available for design and up front costs.  A Reimbursement Resolution is an allowable method for issued bonds to reimburse these costs. 

 

This resolution replaces the reimbursement resolutions adopted April 15, 2019 and August 5, 2019 to advance Alamance Community College for the cost of architectural services and other up-front costs.  This resolution consolidates all previous resolutions into one resolution in compliance with tax law.  The new reimbursement resolution maintains the previous reimbursement authorization for  expenditures up to $3,031,949.

 

For more information, please contact Alamance County Manager Bryan Hagood  336-570-4044.

Meeting History

Mar 2, 2020 9:00 AM  Alamance County Board of Commissioners Regular Meeting

County Manager Hagood presented a revised reimbursement resolution for approval for the community college. The bond attorney had recommended having one reimbursement resolution for all the projects rolled into one instead of having reimbursement resolutions for each project. This resolution would replace the reimbursement resolutions that were adopted on April 15, 2019 and August 5, 2019. He noted that the total dollar amount of $3,031,949 for the reimbursement resolution would remain the same.

Commissioner Boswell introduced the following Resolution which was read by title, and moved it be adopted:

RESOLUTION OF THE BOARD OF COMMISSIONERS FOR THE COUNTY OF ALAMANCE, NORTH CAROLINA, DECLARING ITS INTENTION TO REIMBURSE SAID COUNTY FROM THE PROCEEDS OF ONE OR MORE TAX-EXEMPT FINANCINGS FOR CERTAIN CAPITAL EXPENDITURES.

WHEREAS, the County of Alamance, North Carolina (the “County”), is a political subdivision organized and existing under the laws of the State of North Carolina; and

WHEREAS, the County has determined to pay the cost of expanding and improving the facilities for Alamance Community College, including the construction of additional buildings and other facilities, the enlargement, reconstruction, renovation and repair of existing buildings and other facilities and the acquisition of any necessary land, furnishings, equipment and appurtenant facilities therefor (collectively, the “Project”); and

WHEREAS, the Board of Commissioners for the County (the “Board”) has determined to advance certain moneys to pay such expenditures (the “Expenditures”); and

WHEREAS, such Expenditures are available only for a temporary period and it is and will be necessary to reimburse the County for the Expenditures from the proceeds of one or more tax-exempt financings of the County that are expected to be authorized by the Board (collectively, the “Tax-exempt Financings”).

NOW, THEREFORE, BE IT RESOLVED by the Board as follows:

The Board hereby declares the County’s intent to advance the Expenditures and to reimburse the County with the proceeds of the Tax-exempt Financings for the Expenditures. The County reasonably expects on the date hereof that it will reimburse the Expenditures with the proceeds of the Tax-exempt Financings.

Each Expenditure was or will be (a) of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance with respect to the Tax-exempt Financings, (c) a nonrecurring item that is not customarily payable from current revenues or (d) a grant to a party that is not related to or an agent of the County so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the County.

The total estimated amount of Expenditures to be reimbursed is $3,031,949.

The maximum principal amount of the Tax-exempt Financings expected to be entered into with respect to the Project is $39,600,000, plus such additional amounts, if any, as shall be determined to be reasonably necessary for the funding or payment of costs of entering into the Tax-exempt Financings.

The County will make a reimbursement allocation, which is a written allocation by the County that evidences the County’s use of proceeds of the Tax-exempt Financings to reimburse an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. The County recognizes that exceptions are available for certain preliminary expenditures, costs of issuance, certain de minimis amounts, expenditures by small issuers (based on the year of issuance and not the year of expenditure) and expenditures for construction projects of at least five years.

This resolution shall take effect immediately upon its passage.

Thereupon, upon motion of Commissioner Boswell, seconded by Commissioner Lashley, the foregoing resolution was passed by the following vote:

Ayes: Chair Galey, Vice Chair Carter, and Commissioners Boswell, Lashley and Sutton.

Noes: N/A.

RESULT:APPROVED [UNANIMOUS]
MOVER:Eddie Boswell, Commissioner
SECONDER:Bill Lashley, Commissioner
AYES:Bill Lashley, Amy Scott Galey, Steve Carter, Eddie Boswell, Tim D. Sutton