2016/10/3 RESOLUTION AUTHORIZING DELIVERY OF AN INSTALLMENT FINANCING AGREEMENT BY ERWIN FIRE AND RESCUE AND THE TAX EXEMPT LOAN EXTRACT FROM MINUTES OF BOARD OF COMMISSIONERS
A regular meeting of the Board of Commissioners of the County of Harnett,North Carolina(the"Board')
was held at the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front
Street, Lillington, North Carolina, at 9:00 a.m. on October 3, 2016 (the"Meeting'), after proper notice, and was
called to order by Chairman Jim Burgin, and upon the roll being called, the following members of the Board
answered present:
Jim Burgin, Chairman
Gordon Springle, Vice Chairman
Abe Elmore, Commissioner
Barbara McKoy, Commissioner
Joe Miller, Commissioner
The following members of the Board were absent: N/A
Also present: Joseph Jeffries, County Manager
Paula Stewart, Deputy County Manager
Dwight Snow, County Attorney
Kimberly Honeycutt, Finance Officer
Margaret Regina Wheeler, Clerk
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The Chairman of the Board of Commissioners(the"Board`)for the County of Harnett,North Carolina(the
"County")stated that the Board has been requested by the Erwin Fire and Rescue Squad, Inc. ("EFRS')to approve
an installment financing agreement between BB&T Bank and EFRS(the"Agreement"). EFRS will use the proceeds
of the Agreement to refinance annual debt and, if applicable, to pay certain expenses incurred in connection with
the delivery of the Agreement. The Chairman then stated that a notice of public hearing by the Board regarding the
refinancing of annual debt and the execution and delivery of the Agreement had been published on September 22,
2016 in The Daily Record.
Chairman Burgin declared the public hearing on the Equipment and the execution and delivery of the
Agreement to be open.
At approximately 7:10 p.m.,the Chairman announced that the Board would hear anyone who wished to be
heard on the advisability of the refinancing of annual debt and the proposed execution and delivery of the
Agreement, and that a representative of EFRS was available and prepared to discuss the details concerning such
matters.
The names and addresses of the persons who were present, summaries of their oral comments and copies
of their written comments are set forth as an appendix hereto.
After the Board had heard all persons who requested to be heard,the Chairman declared the public hearing
closed.
Commissioner Elmore then introduced the following resolution, the title of which was read and copies of
which had been previously distributed to each Commissioner:
RESOLUTION AUTHORIZING AND APPROVING THE DELIVERY OF AN INSTALLMENT
FINANCING AGREEMENT BY ERWIN FIRE AND RESCUE SQUAD, INC. AND THE TAX-EXEMPT
LOAN RELATED THERETO
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WHEREAS, Erwin Fire and Rescue Squad, Inc. (the "EFRS') and the County of Harnett, North Carolina
(the"County")have heretofore entered into an agreement on July 1, 2015 whereby EFRS has agreed to provide the
County fire protection services; and
WHEREAS, EFRS wishes to refinance annual debt and, if applicable, to pay certain expenses incurred in
connection with the delivery of the Agreement(as defined below); and
WHEREAS, EFRS and BB&T Bank intend to enter into an installment financing agreement (the
"Agreement") whereby BB&T Bank will advance to EFRS funds for the refinancing of annual debt and, if
applicable, such related costs; and
WHEREAS, the interest component of the repayment obligations under the Agreement are intended to be
excludable from the gross income of the recipients thereof; and
WHEREAS, pursuant to the Internal Revenue Code of 1986, as amended (the "Code"), the execution and
delivery of the Agreement must be approved, after a public hearing required by Sections I50(e)(3) and 147(1) of
the Code, by the governmental unit having jurisdiction over the area in which the EFRS is located; and
WHEREAS, the Agreement does not constitute a debt of the State of North Carolina or any political
subdivision or any agency thereof, including the County, or a pledge of the faith and credit of the State of North
Carolina or any political subdivision or any such agency, including the County, but is payable solely from the
revenues and other funds provided for by EFRS in the Agreement; and
WHEREAS, because no revenues or taxes of the County are legally pledged to the repayment obligations
under the Agreement, the staff of the County has made no financial analysis of the Agreement or the refinancing of
annual debt to be financed thereby; and
WHEREAS,the Board of Commissioners of the County(the"Board"),pursuant to public notice duly given,
has held a public hearing on the advisability of the delivery of the Agreement to refinance annual debt and has
considered the comments of all persons who requested to be heard; and
WHEREAS, the Board desires to approve the delivery of the Agreement for the purpose of refinancing of
annual debt;
NOW THEREFORE, BE IT RESOLVED by the Board as follows:
1. The Board has held the public hearing and taken the actions set forth herein in order to satisfy
Sections 150(e)(3)and 147(f)of the Code.
2. The delivery of the Agreement in an aggregate principal amount not exceeding $1,266,510 to
refinance annual debt and, if applicable, certain related costs is hereby approved.
3. The Clerk to the Board is hereby authorized and directed to provide a certified copy of this
resolution to EFRS and BB&T Bank.
4. THE AGREEMENT DOES NOT CONSTITUTE A DEBT OF THE STATE OF NORTH CAROLINA OR ANY
POLITICAL SUBDIVISION OR ANY AGENCY THEREOF, INCLUDING THE COUNTY, OR A PLEDGE OF THE FAITH AND
CREDIT OF THE STATE OF NORTH CAROLINA OR ANY POLITICAL SUBDIVISION OR ANY SUCH AGENCY, INCLUDING
THE COUNTY.
5. This resolution is effective on its adoption.
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STATE OF NORTH CAROLINA )
) SS:
COUNTY OF HARNETT )
I. Margaret Regina Wheeler. Clerk to the Board of Commissioners of the County of Harnett.
North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a Resolution
entitled. "RESOLUTION AUTHORIZING AND APPROVING THE DELIVERY OF AN INSTALLMENT
FINANCING AGREEMENT BY ERWIN FIRE AND RESCUE SQUAD, INC. AND THE TAX-EXEMPT LOAN
RELATED THERETO" adopted by the Board of Commissioners of the County of Harnett, North Carolina,
in regular session convened on the 3rd day of October. 2016.
WITNESS my hand and the corporate seal of the County of Harnett. North Carolina, this the 3`d
day of October, 2016. ///1 //
- ,,,t. '., Mar r t Regina W ler
eII
e Cler t the Board o ommissioners
(SEAL) *: i!Att _ fr!
.,Is h V .
THIS IN. 'UMENT HAS BEEN REI"r•
8 E • FICER
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