CAPITAL PROJECTS ORDINANCE
ARTICLE 18-1
STATE OF NORTH CAROLINA
ONSLOW COUNTY
A RESOLUTION REGARDING THE PROPOSED CONSTRUCTION AND FINANCING OF A TOWN HALL
Councilman Jimmy Kissner moved that the following resolution be adopted:
WHEREAS, the Town of Holly Ridge desires to construct a Town Gall to better serve the citizens of Holly Ridge;
and
WHEREAS, the Town of Holly Ridge desires to finance the necessary facility for the Town Hall by installment
contract with a financial institution; and
WHEREAS, the Local Government Commission of the North Carolina Department of the State Treasurer requires
that the Town of Holly Ridge make certain findings before the commission can grant approval to the Town’s
application for approval of this particular installment contract as authorized under North Carolina General Statues
160A, Article 3, Section 3, Section 20;
NOW THEREFORE, BE IT RESOLVED that the Town Council of the Town of Holly Ridge, in a regular meeting
finds as follows:
(1) The proposed project is the construction of a Town Hall. The proposed method of financing is a 5- year
installment contract between the Town and a financial institution, for fifty thousand dollars ($50,000.00) of the
estimated construction cost.
(2) The construction of a new Town Hall is necessary and expedient for the Town of Holly Ridge, due to growth in the
number of employees in the last 30 years and the dilapidated nature of the current structure that endangers the
employees and the equipment of the Town.
(3) The proposed construction cost of the Town Hall is $75,000.00 that includes design, lot preparation, construction,
and a ten (10) percent contingency fee. The Town will provide a Deed of Trust described in Attachment to fully
collateralize the installment purchase contract and no deficiency judgment will be allowed in the event that the Town
defaults on payments. Using this method of financing, there will be absolutely no pledge of the Town’s taxing authority.
RESOLUTION REGARDING THE PROPOSED CONSTRUCTION AND FINANCING
ARRANGEMENT OF A TOWN HALL
(4) The Town Attorney rendered an opinion that the construction of the Town Hall is authorized by Law, and is a
purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina at that time.
(5) Because of the expeditious nature of this project, and the relatively small total project cost, the proposed
installment contract is preferable to alternative financing mechanisms as follows:
(a) Current appropriations in the Town’s operating budget are inadequate to fund this project.
(b) The Town’s current fund balance would be drawn down by over sixty (60) percent if it were used to fund
this project.
(c ) The does not retire enough debt annually to fund this project using the “two-thirds limitation”.
(d) The proposed financing is preferable to a general obligation bond because the costs of authorizing and
issuing bonds would be greater than those associated with the installment contract.
(e) Revenue bonds are inappropriate for this project.
(6) After receiving five competitive bids for financing the project, the Town Council has chosen, upon Local
Government Commission approval, to finance %50,000.00 of the project with First Citizens Leasing Corporation for
five (5) years at 7.35 percent interest. The total cost of the financing agreement is estimated to be $60,535.60,
including principal, interest, a one (1) percent origination fee, and $500.00 for drafting documents. The interest rate
compares favorable to interest rates of recent general obligation bond issues.
(7) Examination of the audit reports for the past three (3) fiscal years of the Town of Holly Ridge will show the Town’s
debt management policies are in strict compliance with North Carolina Law.
(8) No increase in the property tax rate will be necessary to raise sums to fall due under this contract in each fiscal
year during the term of the contract. Funding for the debt service payment will be through annual appropriations in
the operating budget for the general fund.
(9) The Town is not now in default in meeting its debt service obligations.
(10) On November 28, 1990 the Town held a public hearing at which the project and the financing arrangements were
fully presented and described to the public.
RESOLUTION REGARDING THE PROPOSED CONSTRUCTION AND FINANCING ARRANGEMENT OF A TOWN HALL
(11) The Town hereby designates the obligation referred to as the installment purchase agreement between note
heretofore between First Citizens Bank and the Town of Holly Ridge as tax exempt obligation qualifying for the
exception to the arbitrage rebate requirements of section 148 (f) of the Internal Revenue code of 1986 as amended
and further designates such agreement as a qualified tax exempt obligation within the meaning of Section 265 (b) (3)
(B) (ii) of the Internal Revenue Code of 1986 as amended.
(12) The Town Council hereby directs the Town Manager to file an application with the Local Government
Commission for the project as described.
Dated this 12th day of February, 1991.
CAPITAL PROJECTS ORDINANCE
18-2
STATE OF NORTH CAROLINA
COUNTY OF ONSLOW
BE IT ORDAINED by the Town Council of the Town of Holly Ridge, that pursuant to Section 13.2 of Chapter 159 if
the General Statues of North Carolina, the following Capital Project Ordinance is hereby adopted:
SECTION 1. The project authorized is the construction of a basketball court. The project will be financed with
contributions from the Parks and Recreation portion of the General Fund.
SECTION 2. The officers of the project are the Town Manager, the Finance Officer, and the Parks and Recreation
Committee Chairperson.
SECTION 3. The officers of the project are hereby directed to proceed with the capital project within the terms of the
budget contained herein.
SECTION 4. The following revenues are anticipated to be available to complete this project:
FY 199---91 General Fund $5,400.00
Parks & Rec. Committee Fund raising Fund $1,100.00
Total $6,500.00
SECTION 5. The following amounts are appropriated for the project:
Construction $6,500.00
Total $6,500.00
SECTION 6. The Finance Officer is hereby directed to establish an accounting system for the purpose of constructing
the facility and to maintain within the General Fund sufficient specific detailed accounting records.
SECTION 7. The Town Manager is hereby authorized to review and approve all payments to subcontractors and
material men for the purpose of constructing the facility.
SECTION 8. The parks and recreation committee chairperson is hereby directed to gather all information on materials
and labor price and report to the Town Manager in order to receive authorization to proceed. The chairperson is
further directed to prepare purchase orders and attain approval prior to the initiation of any work or the ordering of
any materials.
SECTION 9. Copies of this Capital Project Ordinance shall be made available to the Budget Officer and the Finance
Officer for direction in carrying out this project.
Adopted 11th day of June, 1991.
Original on file in Clerk’s office.