Title
Public Hearing and Decision for an Installment Financing Contract for Equipment and Public Facilities
Action
Action:
A. Conduct a public hearing on approval of an installment financing contract not to exceed $120,000,000 for equipment acquisition and construction of and improvements to facilities,
B. Adopt a resolution authorizing and approving an installment financing contract for the proposed financing and calling for the execution and delivery of various documents necessary to complete an installment financing contract, and
C. Adopt a budget ordinance appropriating $6,600,000 to the Municipal Debt Service Fund.
Body
Staff Resource(s):
Matthew Hastedt, Finance
Explanation
§ This action authorizes the city to enter into an installment financing contract not to exceed $120,000,000 to finance the city’s acquisition of certain equipment and construction of and improvements to facilities.
§ Installment financing contracts such as Certificates of Participation (COPs) and Limited Obligation Bonds (LOBs) are common debt financing tools used by municipal governments to help fund the purchase of capital equipment and the construction or renovation of facilities.
§ The city will enter into an installment financing contract not to exceed $120,000,000 to finance the city’s acquisition of certain equipment and construction of and improvements to facilities, $113,400,000 of which was appropriated in prior adopted budgets. It also includes $6,600,000 to refund the Series 2014A COPs. The refund is expected to result in economic savings over the life of the refunding.
§ The proceeds from this financing will be used to finance the costs of below and similar other projects:
- Renovating the Law Enforcement Center for the 911 Expansion,
- Constructing a new Animal Care and Control Adoption Facility,
- Implementing ADA transition in facilities,
- Constructing, renovating, and improving firefighting and other public safety facilities,
- Completing capital building improvements and sustainability-related utility systems upgrades,
- Acquiring land for Police hangar and other public safety facilities,
- Improving other governmental facilities, and
- Purchasing Charlotte Water equipment.
§ The city’s obligation to repay the debt will be secured by real property and a security interest in the equipment.
§ The Charlotte Water equipment portion will be supported by the Charlotte Water Debt Service Fund.
Fiscal Note
Funding: Municipal Debt Service Fund and Charlotte Water Debt Service Fund
Attachments
Attachment(s)
Resolution
Budget Ordinance