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HomeMy WebLinkAbout030413mHAR -NETT COUNTY BQA_Rj OF MMISSI0Minutes of Regular Meeting 1��RS March 4, 2013 The Harnett County Board of Commissioners Commissioners Lillin Meeting Room, County Administration Building nday, March 4 g, 102 East Front Street, 013, Members present: Jim B ur'gin, Chairman Gary House, Vice Chairman Beatrice B. Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Staff present: Joseph Jeffries, Interim County Tony Wilder, Deputy Count Manager Dwight Snow, Coun' Manager � Sylvia Blinson Finance ance Officer Margaret Regina Wheeler, Clerk to the Board Chairman Burgin called the of Harnett & meeting to order at 9:00 allegiance. Co Moore Counties for Girl Scouts _ am. Laura Douglass, Commissioner Springle Carolina Coastal PinMembership , le Director Pringle gave the invocation. Chairman Bin. pledge of Burgin called for additions or deletions to the House moved to approve the a which passed unanimously. agenda as published. Commissioner agenda. Vice Miller seconded the � Commissioner Hill motion moved to approve the items on the consent agenda. Commissioner agenda: the motion and the Board unanimously a pproved the followin g items on the consent 1. Minutes: February 18, 2013 Regular Meeting 2. Budget Amendments: ndments: 263 Detention Center Pro'ect CP0401 Code 313-8300-410.45-30 � Engineer 313 -8300- 410.45 -g0 Materials &Supplies 313 -8300- 410.46 -01 Contingency 313 - 8300- 410.45 -20 Residual Equity Legal 40,618 decrease 3,483 decrease 2,604 decrease 46,706 increase 1 decrease March 4, 2013, Regular g Meeting Minutes Harnett County Board of Commissioners Page 1 of 10 266 Boone Trail Elementary Code 318 -8300- 480.45 -70 318- 8300 - 480.45 -75 318 -8300- 480.45 -25 318 -8300- 480.45 -22 318 - 8300 - 480.90 -10 318 - 8300 - 480.46 -01 318- 0000 - 314.50 -00 318- 0000 - 361.50 -00 318- 0000 - 361.50 -00 School Project CP0905 Interest During Construction Soil & Environmental Sewer Issuance Cost General Fund Residual Equity Sales Tax Interest First Citizen 279 Planning AMPI Unrecoverable Cost Grant Code 246 - 0000 - 334.72 -02 Planning - NCDENR AMPI 2011 246 - 0000 - 334.72 -04 Planning - NCDENR AMPI 2012 280 Sheriff Code 110 -5100- 420.74 -74 110- 0000 - 356.30 -00 281 Highland Middle School Code 331 - 8300 - 480.45 -22 331- 8300 - 480.45 -40 331 - 8300 - 480.45 -74 331 -8300- 480.45 -80 282 Parents As Teachers Pro Code 110- 7310 - 465.11 -00 110 -7310- 465.21 -00 110- 7310- 465.21 -04 110- 7310- 465.21 -05 110 -7310- 465.22 -00 110 -7310- 465.23 -00 110 -7310- 465.26 -08 110 -7310- 465.41 -11 110- 7310- 465.44 -21 110 -7310- 465.58 -01 110 -7310- 465.58 -14 110 -7310- 465.60 -33 110 -7310- 465.60 -47 110 -7310- 465.60 -53 110- 0000 - 334.73 -10 Capital Outlay Insurance Claims Project CP1301 Cost of Issuance Land & Right of Way Capital Outlay Buses Contingency gram Salaries & Wages Group Insurance Group Insurance H.S.A. Group Insurance / Employee Clinic FICA Tax Expense Regular Retirement Worker's Compensation Telecommunications & Postage Building & Equipment Rent Training & Meetings Travel Administration Materials & Supplies Food & Provisions Dues & Subscriptions Parents As Teachers 283 Brightwater Infrastructure PU1003 Code 575 -9100- 431.45 -01 Construction 575- 9100 - 431.45 -80 Contingency 400,953 decrease 4,136 decrease 253,699 decrease 1,235 decrease 534,623 increase 326,095 increase 119,871 increase 280 increase 80,544 increase 34,050 decrease 34,050 increase 1,329 increase 1,329 increase 23,229 increase 166,278 increase 220,000 decrease 30,493 increase 47,944 increase 1,160 increase 500 increase 500 increase 3,342 increase 2,778 increase 275 decrease 690 decrease 180 increase 100 increase 1,421 increase 1,175 increase 399 increase 113 increase 58,647 increase 23,879 decrease 23,879 increase March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 2 of 10 284 Tax Department Code 110 -4500- 410.33 -45 Contracted Services 110 -4500- 410.74 -74 Capital Outlay 110 - 4500 - 410.30 -04 Professional Services 13,545 decrease 12,545 increase 1,000 increase 3. Tax refunds, rebates and releases (Attachment 1) 4. Emergency Services requested award of the EMS vehicles bids for ambulances for Harnett County EMS to Northwestern emergency Vehicles for a new ambulance in the amount of $119,839 and to Southeastern Specialty Vehicles for three remount ambulances in the amount of $224,910. (Attachment 2) 5. County Engineer requested approval of a professional services agreement amendment with ECS Carolinas, LLP, to include construction testing services for the Dunn Erwin Corrective Action Projects. 6. Proclamation for Girl Scout Week in the County of Harnett March 11 — 17, 2013 7. Public Utilities requested approval of write -offs in the amount of $12,206.19 for fourth quarter 2012. All of these accounts have been delinquent for more than three years and the facilitation of these write -offs is an important step in a continuing effort to effectively manage collections and bad debt. Harnett County Public Utilities is currently using the Local Government Debt Setoff Program and On -Line Collections, Inc. to help collect their delinquent accounts. 8. Public Utilities requested consideration of a water line extension request to serve two citizens along Flowers Drive in Harnett County. The proposed water line extension of 1,500 feet will cost approximately $8,946 and will be installed by HCDPU personnel. This extension will be funded from a combination of tap fees from the customers and budgeted funds from HCDPU for other capital improvements. 9. Cooperative Extension requested permission to receive full allocation for Parents As Teachers grant for fiscal year 2012 -2013 from the Harnett County Partnership for Children Chairman Burgin opened the floor for informal comments by the public, allowing up to 3 minutes for each presentation up to 30 minutes. Donald Thomas of Bunn Level spoke on behalf of the Sandhills Antique Farm Equipment Club and invited the group to attend the upcoming Sandhills Antique Farm Show March 15 — 16, 2013. Mr. Thomas noted the upcoming show would be featured on NC Weekend. Mr. Thomas also invited commissioners to attend the upcoming Agricultural Education Day being held for over 300 Harnett County fifth graders. Floyd Hines of Anderson Creek thanked Commissioner House for his support and trying to help him with an issue he had with the County. March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 3 of 10 Bobby Hockaday, representing Solid Start Child Care Programs, invited the group to join Solid Start in their 10 year celebration. Mr. Hockaday said Solid Start was the first national accredited child care center in Harnett County and noted they now have seven program sites serving 327 children and their parents. Kent Jeffries of Chalybeate Springs spoke on behalf of the North Harnett Property Rights Association. Mr. Jeffries encouraged the Board of Commissioners to create and adopt an enforceable ordinance that requires all for -profit firearm shooting ranges in Harnett County to obtain a conditional use permit in order to operate. Mr. Jeffries cited state statutes regarding county authority and firearms regulations and said such an ordinance would be outside of the zoning powers that are granted to the counties and are police powers. Laura Douglass, Membership Director of Harnett & Moore Counties for Girl Scouts — North Carolina Coastal Pines, thanked commissioners for honoring the upcoming Girl Scout Week. Mrs. Douglass noted Harnett County has over 1000 members in their organization. Bill King of 1663 Loop Road in Bunnlevel said he lives beside of a very loud shooting range that was started in the early 90's when the county was not zoned. Mr. King said at that time he had correspondence with the county attorney and was told nothing could be done until the shooting range had a negative outcome as a basis for a lawsuit and was encouraged to keep good records. While Mr. King spoke, Frank Crowell displayed pictures of "barn hits" and a jar of rounds Mr. King has picked up at the lower end of his hay field. Mr. King said he has had to put out a wildfire in the hay field which he believes was started by a live round from the range. Mr. King also talked about the noise from the range at all hours of day and night. Chairman Burgin invited Mr. King to share his records with commissioners and said they would discuss this issue at their next work session. Harry Anderson of Bunnlevel, a neighbor of Mr. King, said he considers this is a safety issue as well as quality of life issue and said a ban or restriction would be appreciated. Glen Finch, 562 Morning Glory Lane, talked about stray bullets that have hit his home on three different occasions and said something needs to be done. He also said his son's horse boarding business has diminished by the activities at Drakes Landing because riders are unable to ride the trails. Mr. Finch said the county's noise ordinance has not been upgraded since 1981. Mr. Finch said he would share copies of his records with commissioners following the meeting. Tom Steves of Loop Road said he lives about 1/2 a mile from the shooting range on Loop Road and wanted to reiterate the nuisance that shooting ranges in residential areas provide especially when there are no rules regarding when they can shoot. He asked the Board to consider some sort of ordinance that would limit the times of day, maybe the days of the week, to give residents having to deal with this nuisance some respite and peace. Kareem Strong, Regional Ombudsman with Mid Carolina Area Agency on Aging for Harnett County, explained his role as ombudsman. Mr. Kareem alerted commissioners that there are no Nursing Home Community Advisory Committee members in Harnett County. He also said he has nine vacancies for Harnett County members on the Adult Care Home Community Advisory Committee. Mr. Kareem said committee members March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 4 of 10 perform quarterly visits to facility where they observe and monitor. Committee members' information becomes public record that can be provided to citizens regarding these facilities. Mr. Kareem asked for help in finding citizens interested in joining these working committees. He said this commitment could take between 5 to 10 hours a month and mileage reimbursement is available. - Donna Parker, 1139 Norrington Road, invite commissioners to an upcoming event to meet the new head football coach at Overhills High School. Regarding the Board of Equalization and Review, Vice Chairman House moved that the appointment terms for members serving on the Board of Equalization and Review be two year terms with a maximum of 8 years served. Commissioner Springle seconded the motion which passed unanimously. Commissioner Springle moved to approve the appointments listed below. Commissioner Hill seconded the motion which passed unanimously. BOARDS ON WHICH COMMISSIONERS SERVE Jim Burgin: CCCC Board of Trustees Joe Miller: CCCC Harnett County Campus Advisory Board BOARD OF EQUALIZATION AND REVIEW Joe Miriello (nominated by Vice Chaimian House) was reappointed to serve on this Board for a term of two years expiring February 28, 2015. Larry Francis (nominated by Commissioner Springle) was appointed to serve on this Board for a term of two years expiring February 28, 2015. JUVENILE CRIME PREVENTION COUNCIL (JCPC) Kayla Daughtry, Mikal Robinson and David Hodges (nominated by Commissioner Hill) were appointed to serve on this council. Phyllis Owens, Director of Economic Development, petitioned the Board for a public hearing to obtain citizen input into the identification of community needs and desired Community Development Block Grant (CDBG) activities. The CDBG Program permits a wide range of economic and community development activities including: acquisition; public facilities construction; loan to private businesses; housing rehabilitation; code enforcement; clearance; project planning and administration; etc. Applications for Economic Development must show that in excess of 60% of CDBG funds will benefit low or moderate - income persons through job creation or retention. Applications for other CDBG programs must show that funded activities will: (1) provide 51% or greater benefit to low or moderate income persons; (2) benefit identified special need populations; or (3) address health and safety needs. The CDBG — Economic Development Program is administered by the Commerce Finance Center. NC Community Assistance administers all other CDBG program. Mrs. Owens said the amount of money could be between $5,000 to $10,000 per job depending upon the applicant and project. March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 5of10 Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one else move, Chairman Burgin closed the public hearing. - Joe Langley of 298 Kirk Adams Road in Angier said he doesn't know if the community development block grant would fit into the expansion of recreation but spoke of the need for a YMCA or Boys and Girls Club in Harnett County. Commissioner Hill said the CDBG program does an excellent job and is a help to the community, sometimes improving houses to the point of the tax base being increased. Marcia Everett of Angier talked about creating material recovery facilities where you can recycle the products at a landfill and capture the methane and use that to provide electricity which could provide also employment, especially for people who were felons. Vice Chairman House said we need to encourage this type of grant funding and believes the CDBG program does worthwhile projects. Seeing no one else move Chairman Burgin closed the public hearing. Michael Juby, Bond Counsel with Parker Poe, petitioned the Board for a public hearing to receive public comments on the proposed execution and delivery by the County of (1) an installment financing contract in an amount not to exceed $43,000,000 (the "Contract") to (a) finance the purchase of general obligation refunding bonds (collectively, the "Bonds ") issued by certain water and sewer districts created by the County in order to assist such districts to achieve debt service savings with respect to the Bonds and (b) refinance certain existing installment payment obligations of the County (collectively, the "Prior Obligations ") in order to achieve debt service savings for the County with respect to the Prior Obligations and, (2) to the extent required by the entity or its assigns providing funds to the County under the Contract, a deed of trust, security agreement and fixture filing (the "Deed of Trust ") related to the County's fee simple interest in all or portion of the real property currently mortgaged by the County to secure the Prior Obligations, together with the improvements thereon (collectively, the "Premises "). The Premises may include the site on which certain water and sewer system improvements are located, the site on which Angier Elementary School is located, the site on which the County's Agricultural Center is located and the site on which the County's Animal Control Shelter is located. Notice of a public hearing was published on February 21, 2013 stating that the Board would hold this public hearing on March 4, 2013, at 9:00 a.m. Mr. Juby explained the public hearing is on the contracts that the county will enter into in connection with a public offering of limited obligation bonds. He noted the proceeds of those bonds will then be pooled together and purchase the underlying refunding bond that each district will issue as part of this financing. Mr. Juby explained there are two layers; one is the underlying district layer which are the next items on the agenda where each district will go through the process under state law to issue their own refunding bond to refund their current general obligation bonds that are outstanding and then the County will use the proceeds from this limited obligation bond financing to purchase those bonds which will allow the County to take advantage of some good savings available in market. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one move, Chairman Burgin closed the public hearing. March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 6 of 10 The Harnett County Board of Commissioners reconvened as the governing body of the South Central Water & Sewer District. a. Commissioner Springle moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Miller seconded the motion which passed unanimously. b. Commissioner Springle moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Miller seconded the motion which passed unanimously. c. Commissioner Springle moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Hill seconded the motion which passed unanimously. (Attachment 3) The Harnett County Board of Commissioners reconvened as the governing body of the East Central Water & Sewer District. a. Commissioner Miller moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. b. Commissioner Miller moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. c. Commissioner Miller moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Springle seconded the motion which passed unanimously. (Attachment 4) The Harnett County Board of Commissioners reconvened as the governing body of the Northwest Water & Sewer District. a. Commissioner Hill moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. b. Commissioner Hill moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. c. Commissioner Hill moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Springle seconded the motion which passed unanimously. (Attachment 5) March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 7 of 10 The Harnett County Board of Commissioners reconvened as the governing body of the Riverside Water & Sewer District. a. Commissioner Miller moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. b. Commissioner Miller moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. c. Commissioner Milled moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Springle seconded the motion which passed unanimously. (Attachment 6) The Harnett County Board of Commissioners reconvened as the governing body of the Southeast Water & Sewer District. a. Vice Chairman House moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. b. Vice Chairman House moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. c. Vice Chairman House moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Springle seconded the motion which passed unanimously. (Attachment 7) The Harnett County Board of Commissioners reconvened as the governing body of the West Central Water & Sewer District. a. Commissioner Hill moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. b. Commissioner Hill moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Springle seconded the motion which passed unanimously. c. Commissioner Hill moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond Hill. Commissioner Springle seconded the motion which passed unanimously. (Attachment 8) March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 8 of 10 The Harnett County Board of Commissioners reconvened as the governing body of the Southwest Water & Sewer District. a. Commissioner Springle moved to adopt the findings resolution relating to the District's general obligation water and sewer refunding bond. Commissioner Miller seconded the motion which passed unanimously. b. Commissioner Springle moved to adopt the bond order authorizing District's general obligation water and sewer refunding bond. Commissioner Hill seconded the motion which passed unanimously. c. Commissioner Springle moved to adopt the bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Commissioner Hill seconded the motion which passed unanimously. (Attachment 9) The Board reconvened as the Harnett County Board of Commissioners. Bill Larison, Director of Good Hope Behavioral Health Services, gave an update on the hospital. Pat Cameron and Tom Miriello were also present. Mr. Larison thanked the Board of Commissioners for their support and all that they have done to help get that facility reopened and accepting patients. He noted 17 new employees were hired and trained and in January the facility was licensed to provide treatment by the NC Division of Health Service Regulations. He noted to date, 12 patients have been or are in the process of being treated at the facility. Mr. Larison said to move forward the facility needs joint commission accreditation which is a process needed to determine that they are accredited to provide services as a hospital. Once that is completed, Good Hope would be able to file for and get certified as an involuntary commitment facility. Mr. Larison said they would also be able to have the Centers for Medicare and Medicaid Services (CMS) to come in and certify them so they can accept Medicare and Medicaid. Mr. Larson said once they have completed those step they will be able to apply for commercial funding through commercial insurance companies and also be able to apply for state funding through the local management entity, Sandhills Center. He also said they would be able to accept state funding which is three -way funding. Mr. Larison reported that the applications for accreditation are complete and said he hopes the process will be complete in 4 to 6 weeks. He noted they have had to turn away some involuntary commitments. Mr. Larison noted the hospital has established relationships with 11 local vendors including laundry, pharmacy and office supplies and use local vendors when possible. Commissioner Miller, referencing a letter from Attorney Ben Thompson on behalf of Harnett Health System, asked for several clarifications including what the CON of Good Hope is right now. Mr. Cameron responded the 2001 CON is still in place. Mr. Cameron confirmed that Good Hope is working under a 16 bed CON. Mr. Cameron said nothing would prohibit expanding if allowed to go forward with the hospital. Commissioner Miller also asked if any of the money the county is helping Good Hope with would be returned. Mr. Cameron said they anticipated the county assisting them for three years during the start-up period while they try to become self - sufficient. March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 9of10 Mr. Jeffries presented the following report: - January 2013 Harnett County Department of Public Health Activities Summary - $2,490,593.38 Total Unpaid 2012 -13 Property Taxes Report Mr. Jeffries reported staff is currently coordinating a visit to the Central Harnett Hospital Campus as well as scheduling a meeting with local legislators. He also noted the Board of Education tablets have been delivered. Mr. Jeffries noted staff would respond to Mr. David Song's request for water on Ruffin Road at their next special work session. Chairman Burgin asked to also discuss the fee for septic tanks at the upcoming meeting. Chairman Burgin called for any new business. Chairman Burgin asked to discuss hunting with dogs at the next work session as he has been told if they do make a change they think they could get it in the new publication. Commissioner Hill moved that the Board go into closed session to discuss certain personnel matters. Commissioner Springle seconded the motion which passes unanimously. Commissioner Hill moved that the board come out of closed session. Commissioner Springle seconded the motion which passed unanimously. Commissioner Springle moved to adjourn the meeting at 11:25 am. Commissioner Hill seconded the motion which passed unanimously. Burgin, Chai S et Regina eeler, Clerk March 4, 2013, Regular Meeting Minutes Harnett County Board of Commissioners Page 10 of 10 L"ll.l "Ql:ititicaai i App.covaci by the .ln4 Board of Commissioner Board Report Date : 03/04/2013 TO : HARNETT COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND P Approved By is OC J ' -1,3 NALTIES FOR ALL MUNICIPALITIES 1 CARRINGTON, KRISTINA RACHEL 115B PINECREST DR SPRING LAKE, NC 283907341 SPRING LAKE, NC, 28390 - 7341 2 DAVIS, HATTIE R PO BOX 1616 ANGIER NC, 27501 - 0000 3 JOSEPH, DRELIEN PO BOX 1158 COATS NC, 27521 - 1158 4 JOSEPH, DRELIEN PO BOX 1158 COATS NC, 27521 - 1158 5 JOSEPH, DRELIEN PO BOX 1158 COATS NC, 27521 - 1158 6 JOSEPH, DRELIEN PO BOX 1158 COATS NC, 27521 - 1158 7 MALENA, TRAVIS B MALENA, ANNE M 100 PERSON CT SPRING LAKE, NC, 28390 -1685 8 MARTIN, JOHN THOMAS 1067 COKESBURY RD FUQUAY VARINA, NC, 27526 - 6523 9 MARTIN, LIESEL ANNE 1067 COKESBURY RD FUQUAY VARINA, NC, 27526 - 6523 10 NYUMAH, VICTOR City 0.00 32 WOLFPACK LN 0002004053- 2012- 2012 - CAMERON, NC, 28326 - 6283 000000 County 147.68 City(CI0 6.23 0001413020- 2008- 2008- 5) 000000 County 10.72 City(CI0 11 11 0001413020- 2009- 2009- 5) 000000 County 18.88 City(C10 15.86 0001413020 - 2010 -2010- 5) 000000 County 26.92 0001975024- 2011- 2011- 000000 0000013805- 2012 -2012- 000000 0000028587- 2008- 2008- 000000 0000028587- 2009- 2009- 000000 0000028587- 2010- 2010- 000000 0000028587- 2011- 2011- 000000 City 0.00 County 145.42 City 0.00 County 140.00 City 0.00 County 90.00 City 0.00 County 90.00 City 0.00 County 90.00 City 0.00 County 150.99 0002004031- 2012- 2012- City 0.00 000000 County 88.76 City() 11.15 0002003670- 2012 -2012- 000001 County 0.00 City() 60.44 0002008392- 2012 -2012- 000001 County 0.00 11 THORNE, KELLY ELIZABETH 810 N ELLIS AVE DUNN, NC, 28334 - 3206 12 THORNE, KELLY ELIZABETH 810 N ELLIS AVE DUNN, NC, 28334 - 3206 13 THORNE, KELLY ELIZABETH 810 N ELLIS AVE DUNN, NC, 28334 - 3206 145.42 Refund 140.00 Refund 90.00 Refund 90.00 Refund 90.00 Refund 150.99 Refund 88.76 Refund 11.03 Refund 59.09 Refund 147.68 Refund 16.95 Refund 29.99 Refund 42.78 Refund Military Exemption Refund of 2' Solid Waste Fees; Decrease in Number of Mobile Homes in Park Refund of 2 Solid Waste Fees; Only 2 Homes on Property Refund of 2 Solid Waste Fees; Only 2 Homes on Property Refund of 2 Solid Waste Fees; Only 2 Homes on Property Refund of 2 Solid Waste Fees; Only 2 Homes on Property Military Exemption Situs Correction Situs Correction Military Exemption Value Decrease Value Decrease Value Decrease 14 THORNE, KELLY ELIZABETH 810 N ELLIS AVE DUNN, NC, 28334 - 3206 WM. A. TONY WILDER Revenue Administrator CC: WM. A. TONY WILDER 0001413020- 2011- 2011- 000000 City(CI0 5) 3.52 Value Decrease 9.50 Refund County 5.98 City Total County Total Total to be Refunded 108.31 1,005.35 1,113.66 i n riirr left r; ;r;rc,;r� � by t e o -:rnty Hoard of Commissioners Date : 03/04/2013 TO : HARNETT COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES 1 GODWIN AVIATION LLC PO BOX 1147 DUNN NC, 28335 2 SMITH, LYDIA MAYNARD 1205 W PEARSALL STREET DUNN NC, 28334 - 0000 WM. A. TONY WILDER Revenue Administrator CC: WM. A. TONY WILDER 0001395730- 2012 -2012- 000000 0000048947- 2012 -2012- 000000 City 0.00 County 6.55 City(CI05) 175.34 County 367.72 City Total County Total Total to be Refunded 7,146.24 Refund 543.06 Refund 175.34 374.27 549.61 Value Decrease REBATED AND REBILLED TO REMOVE EXEMPTION FOR 2012; TPAYER INCOME WAS OVER 27,100 Attachment L 4 a b`i the tam ss���et4 cal 3 03c6 (." Board Meeting Agenda Item Agenda Item m / MFETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Award of EMS Vehicles (Ambulances) REQUESTED BY: Gary Pope, Emergency Services Director REQUEST: This is a formal request for the Board to award the EMS Vehicles Bid for ambulances for Harnett County EMS (One New Ambulance and Three Remount Ambulances). Sealed bids were received on February 22, 2013. The following bids were submitted one New Ambulance: 1. Select Custom Apparatus - $122,595 2. Northwestern Emergency Vehicles - $119,839 3. Southeastern Specialty Vehicles - $124,842 The following bids were submitted Three Remount Ambulances: 1. Select Custom Apparatus - N/A 2. Northwestern Emergency Vehicles - $231,606 ($77,202 each) 3. Southeastern Specialty Vehicles - $224,910 ($74,970 each) Bids were received by Renea Warren -Ford, Purchasing Agent, Ricky Denning, EMS Division Chief and Gary Pope, Emergency Services Director. New Ambulance - It is the recommendation that the one new ambulance bid be awarded to Northwestern Emergency Vehicles $119,839. Remount Ambulances - It is the recommendation that the three remount ambulances bid be awarded to Southeastern Specialty Vehicles $224,910. C:\Documents and Settings \gwheeler\Local Settings \Temporary Internet Files\ Content. Outlook \X5535TNL'vi\agendaform2013 - Award of EMS Vehicles (1 New 3 Remount Ambulances).doc Page 1 of 2 CD 3 3 0 cp m Z C CD • CD > C11 • 0 a- SD C0 0 CD 3 0 90 0 cr 3 0 £1.0Z-ZZ-Z (saaueingwy IsJ 1•3 01 CD C.T1 Select Custom Apparatus -00 03 CD Northwestern Emergency Vehicles Southeastern Specialty Vehicles Attachment 3 South Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2053564v3 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Springle introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett (the "County "), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $13,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $1,320,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015, (2) $6,677,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009A maturing on and after June 1, 2013 and (3) $2,966,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009B maturing on and after June 1, 2013. PPAB 2053564v3 WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law: D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Springle, and seconded by Commissioner Miller, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2053564v3 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4`h day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 Margt et Regina W : eler Clerl , o the Board o Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chaiiman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Springle introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds "), (2) $6,753,000 General Obligation Water and Sewer Bond, Series 2009A (the "2009A Bond"), and (3) $3,000,000 General Obligation Water and Sewer Bond, Series 2009B (the "2009B Bond"); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. PPAB 2053564v3 NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the South Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $13,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section S. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Springle, and seconded by Commissioner Miller, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2053564v3 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 lerk o the Bo .. r of Commissioners Cou y of Harne t, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED S13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds "), (2) $6,753,000 General Obligation Water and Sewer Bond, Series 2009A (the "2009A Bond"), and (3) $3,000,000 General Obligation Water and Sewer Bond, Series 2009B (the "2009B Bond'); WHEREAS, the Board of Commissioners (the "Board ") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the South Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $13,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section S. This bond order shall take effect on its adoption The foregoing order was adopted on the 4"' day of March, 2013 and is hereby published this 4th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) Marge t Regina W eeler Clerk the Board f Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the South Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, DO HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other th. • funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said st..a�c ent. Pit Kimberly Honey. tt, Deputy F ance Officer County of Harne North Caro K a otary Public) My issio .ire the y of I STATEMENT OF DEBT OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF ARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT Ps,.. MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4"; DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $37,394,224 Gross Debt ". (B) Deductions to be made from Gross Debt as listed in $37,394,224 the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $1,054,618,281 (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. South Central Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $13,000,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $13,000,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $24,394,224 TOTAL $24,394,224 TOTAL GROSS DEBT $37,394,224 South Central Water and Sewer District of Harnett County, North Carolina Schedule of Deductions Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $13,000,000 $0 $0 $24,394,224 $0 $0 $0 $37,394,224 STATE OF NORTH CAROLINA COUNTY OF HARNETT SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) GtA_i / C2 Margar Regina Wh ler Clerk t the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chai,man of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Springle introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the teens and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; PPAB 2053564v3 WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. 2 PPAB 2053564v3 "Refunded Bonds" means, collectively, (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013. "2004 Bonds" means the District's $2,795,000 General Obligation Refunding Bonds, Series 2004. "2009A Bond" means the District's $6,753,000 General Obligation Water and Sewer Bond, Series 2009A. "2009B Bond" means the District's $3,000,000 General Obligation Water and Sewer Bond, Series 2009B. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $13,000,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section S. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is 3 PPAB 2053564v3 to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause (a) the portion of the proceeds of the Bond necessary to redeem the 2009A Bond and the 2009B Bond to be delivered to the United States Department of Agriculture in accordance with the terms of the 2009A Bond and the 2009B Bond, respectively, and (b) the portion of the proceeds of the Bond necessary to defease and redeem the 2004 Bonds maturing on and after June 1, 2015 to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The foam and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. 4 PPAB 2053564v3 Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the teiuis of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. 5 PPAB 2053564v3 Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC") and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2053564v3 On motion of Commissioner Springle, and seconded by Commissioner Hill, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2053564v3 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of South Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 Marg. et Regina ' eele Clerk o the Board of Commissioners County of Harnett, North Carolina APPENDIX A FORM OF BOND No. R -1 $ UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April _, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA (the "District ") acknowledges itself indebted and for value received hereby promises to pay to the Registered Owner named above, on the Maturity Date specified above, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County ") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360 -day year of twelve 30 -day months) as follows: JUNE 1 PRINCIPAL RATE JUNE 1 PRINCIPAL RATE PPAB 2053564v3 A -1 The portions of this Bond maturing on or after June 1, 20 may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20_. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs ") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to the Local Government Bond Act of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $6,677,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009A maturing on and after June 1, 2013, (2) $2,966,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009B maturing on and after June 1, 2013 and (3) $1,320,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be perfoinied or happen precedent to or in the issuance of this Bond, exist, have been perfomied and have happened, and that the amount of this Bond, together with all other indebtedness of the District, is within every debt and other limit prescribed by said Constitution or statutes. THE FAITH AND CREDIT OF THE DISTRICT ARE HEREBY PLEDGED TO THE PUNCTUAL PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THIS BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A -2 PPAB 2053564v3 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Jim Burgin, Chairman Clerk to the Board of Commissioners Board of Commissioners Date of Execution: April _, 2013 The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A -3 PPAB 2053564v3 FORM OF ASSIGNMENT ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite Name and Address, including Zip Code, and Federal Taxpayer Identification or Social Security Number of Assignee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Dated: Attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Signature guaranteed by: NOTICE: Signature must be guaranteed by a Participant in the Securities Transfer Agent Medallion Program ( "Stamp ") or similar program. PPAB 2053564v3 NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED DRAFT FOR BOARD APPROVAL —NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County ") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission ") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the South Central Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the South Central Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture ") between Harnett County Public Facilities Corporation (the "Corporation ") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee ") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; (2) $[2004 Amount] shall be delivered to U.S. Bank National Association, as escrow agent (in such capacity, the "Escrow Agent ") under an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent; and (3) $[COI Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (3) above. The Escrow Agent hereby acknowledges receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PPAB 2053564v3 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. COUNTY OF HARNETT, NORTH CAROLINA [SEAL] By: Interim County Manager ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA [DISTRICT SEAL] By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee and Escrow Agent By: Vice President 2 PPAB 2053564v3 Exhibit A $ SOUTH CENTRAL WATER AND SEWER DISTRICT OFHARNETT COUNTY, NOR7'u CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNE 1 PRINCIPAL RATE JUNE 1 PRINCIPAL RATE PPAB 2053564v3 Attachment 4 East Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057613v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board "), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * Commissioner Miller introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board ") of the County of Harnett (the "County "), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $3,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $2,823,000 aggregate principal amount of the District's Water Bonds, Series 1995A maturing on and after June 1, 2013 and (2) $137,000 aggregate principal amount of the District's Water Bonds, Series 1995B maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52, PPAB 2057613v2 NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057613v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT SS: ) 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4"' day of March, 2013. WITNESS my hand and the seal of said District, this the 4`'' day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Marga et Regina 'Wheeler Cler o the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Miller introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $3,608,000 Water Bonds, Series 1995A (the "1995A Bonds ") and (2) $172,000 Water Bonds, Series 1995B (the "1995B Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June 1, 2013 and (2) $137,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. PPAB 2057613v2 NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, as follows: Section I. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the East Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED 53,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057613v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) SS: ) 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Clerk • the Board • i Commissioners Count h of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $3,608,000 Water Bonds, Series 1995A (the "1995A Bonds ") and (2) $172,000 Water Bonds, Series 1995B (the "1995B Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June 1, 2013 and (2) $137,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the East Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4"' day of March, 2013 and is hereby published this 4th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAII2O 613x2' Margar'.t Regina W -ler Clerk t% the Board of Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the East Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than nding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statem (Notary Public) ission expires ay of a) ',Kim b erly Honey tt, Deputy Find ce Officer County of Hame , North Caroli STATEMENT OF DEBT OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNE 1 1 COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of Gross Debt ". (B) Deductions to be made from Gross Debt as listed in the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. (E) Percentage that net debt bears to the appraised value of property subject to taxation. $6,460,000 $6,460,000 $0 $1,278,323,387 0% (1) East Central Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $3,500,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $3,500,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $2,960,000 TOTAL $2,960,000 TOTAL GROSS DEBT $6,460,000 East Central Water and Sewer District of Harnett County, North Carolina Schedule of Deductions Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $3,500,000 $0 $0 $2,960,000 $0 $0 $0 $6,460,000 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, in its capacity as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) Margar t Regina W eler Clerk t the Board of Commissioners County of Harnett, North Carolina 1 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Miller introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; PPAB 2057613v2 WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1995A Bonds" means the District's $3,608,000 Water Bonds, Series 1995A. "1995B Bonds" means the District's $172,000 Water Bonds, Series 1995B. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June 1, 2013 and (2) $137,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013. 2 PPAB 2057613v2 Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $3,500,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms of such Refunded Bonds. Any 3 PPAB 2057613v2 remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 1 59E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the f:qui and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of 4 PPAB 2057613v2 the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chaiiivan of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") 5 PPAB 2057613v2 promulgated by the Securities and Exchange Commission (the "SEC") and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057613v2 On motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2057613v2 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, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of East Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 nit.. 161 Marga t Regina W eler Clerk o the Board o Commissioners County of Harnett, North Carolina APPENDIX A FORM OF BOND No. R -1 UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA (the "District ") acknowledges itself indebted and for value received hereby promises to pay to the Registered Owner named above, on the Maturity Date specified above, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County ") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360 -day year of twelve 30 -day months) as follows: JUNE 1 PRINCIPAL RATE JUNE 1 PRINCIPAL RATE PPAB 2057613v2 A -1 The portions of this Bond maturing on or after June 1, 20_ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20_. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs ") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to the Local Government Bond Act of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board "), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $2,823,000 aggregate principal amount of the District's Water Bonds, Series 1995A maturing on and after June 1, 2013 and (2) $137,000 aggregate principal amount of the District's Water Bonds, Series 1995B maturing on and after June 1, 2013. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, together with all other indebtedness of the District, is within every debt and other limit prescribed by said Constitution or statutes. THE FAITH AND CREDIT OF THE DISTRICT ARE HEREBY PLEDGED TO THE PUNCTUAL PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THIS BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A -2 PPAB 2057613v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Jim Burgin, Chaiiiiian Clerk to the Board of Commissioners Board of Commissioners Date of Execution: April , 2013 The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A -3 PPAB 2057613v2 FORM OF ASSIGNMENT ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite Name and Address, including Zip Code, and Federal Taxpayer Identification or Social Security Number of Assignee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Dated: Attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Signature guaranteed by: NOTICE: Signature must be guaranteed by a Participant in the Securities Transfer Agent Medallion Program ( "Stamp ") or similar program. PPAB 2057613v2 NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED DRAFT FOR BOARD APPROVAL —NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County ") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission ") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the East Central Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the East Central Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture ") between Harnett County Public Facilities Corporation (the "Corporation ") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee ") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; and (2) $[COI Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April 2013 PPAB 2057613v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. COUNTY OF HARNETT, NORTH CAROLINA [SEAL] By: Interim County Manager ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA [DISTRICT SEAL] By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee By: Vice President 2 PPAB 2057613v2 Exhibit A $ EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNE 1 PRINCIPAL RATE JUNE 1 PRINCIPAL RATE PPAB 2057613v2 Attachment 5 Northwest Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057524v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chaiiman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Hill introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett (the "County "), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $885,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015 and (2) $315,000 aggregate principal amount of the District's Water Bonds, Series 1997 maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4`h day of March, 2013, has made the following factual findings in regard to this matter: PPAB 2057524v2 A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057524v2 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 Marga et Regina W eler Clerk o the Board Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Hill introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds ") and (2) $995,000 Water Bonds, Series 1997 (the "1997 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. PPAB 2057524v2 NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, as follows: Section I. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Northwest Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4`h day of March, 2013. 2 PPAB 2057524v2 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 Clerk t• the Board County of Harnett, Commissioners orth Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds") and (2) $995,000 Water Bonds, Series 1997 (the "1997 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, as follows: Section I. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Northwest Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4t'' day of March, 2013 and is hereby published this 4th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT'SEAI,) PPAB 2057524v2 A CA _A Marg : ret Regina '4' heeler Cler + to the Boar. of Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the Northwest Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, DO HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other t an funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statem nv 1.y Hon; utt, Deputy finance Officer Countyrgflarnett, North C lira �O •` Car tary Public) My commission eP dire /� the day of 1 () V /;�t, STATEMENT OF DEBT OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $2,8 10,000 Gross Debt ". (B) Deductions to be made from Gross Debt as listed in $2,8 10,000 the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $589,371,012 (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. Northwest Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $1,500,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $1,500,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $1,310,000 TOTAL $1,310,000 TOTAL GROSS DEBT $2,810,000 Northwest Water and Sewer District of Harnett County, North Carolina Schedule of Deductions (A) Funding and refunding bonds authorized by orders $1,500000 introduced but not yet adopted. ' (B) Funding and refunding bonds authorized but not issued. $0 (C) Amount held in sinking funds or otherwise for the payment $0 of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be $1,310,000 incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be $0 incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (F) (G) Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. $0 $0 TOTAL, $2,810,000 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, in its capacity as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) Marga et Regina Whe Clerk o the Board of commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Hill introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. PPAB 2057524v2 NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1997 Bonds" means the District's $995,000 Water Bonds, Series 1997. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. 2 PPAB 2057524v2 "Refunded Bonds" means, collectively, (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013. "2004 Bonds" means the District's $2,795,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $1,500,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County' s Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. 3 PPAB 2057524v2 Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause (a) the portion of the proceeds of the Bond necessary to redeem the 1997 Bonds to be applied to redeem the 1997 Bonds maturing on and after June 1, 2013 and (b) the portion of the proceeds of the Bond necessary to defease and redeem the 2004 Bonds maturing on and after June 1, 2015 to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chahnian of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chaiii uan of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on 4 PPAB 2057524v2 the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. 5 PPAB 2057524v2 Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057524v2 On motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2057524v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) Ss: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Northwest Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 arg ret Regin heeler Clerlij to the Board of Commissioners County of Harnett, North Carolina Attachment 6 Riverside Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057606v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board "), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Miller introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett (the "County "), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $823,000 aggregate principal amount of the District's Water Bonds, Series 2001A maturing on and after June 1, 2013 and (2) $225,000 aggregate principal amount of the District's Water Bonds, Series 2001B maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day of March, 2013, has made the following factual findings in regard to this matter: PPAB 2057606v2 A. Facts Regarding Necessity of Proposed and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The procedures are in compliance with the law. Financing. The proposed bonds are necessary Proposed. The sums estimated for these bonds District's debt management policies and D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057606v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) SS: ) 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057606v2 Margar Regina Wl eler Clerk t the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board "), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Miller introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,0001GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $940,000 Water Bonds, Series 2001A (the "2001A Bonds ") and (2) $254,000 Water Bonds, Series 2001B (the "2001B Bonds "); WHEREAS, the Board of Commissioners (the "Board ") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. PPAB 2057606v2 Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Riverside Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been fled with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED 51,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057606v2 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057606v2 Ouc a)),.. ,(6e t/eL, OW Clerk t the Board ,` Commissioners Count of Harnett, orth Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its (1) $940,000 Water Bonds, Series 2001A (the "2001A Bonds ") and (2) $254,000 Water Bonds, Series 2001B (the "2001B Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Riverside Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4"' day of March, 2013 and is hereby published this 4th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) Margaret Re na W eeler Clerkp the Board of Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the Riverside Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, DO HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. �-( • 11 AAA Kimberly Honey County of Hame Sworn to and subscribed before me on the day of the date of said s ement. (Notary Public) My mmissio the day of tt, Depu North C finance Officer lina STATEMENT OF DEBT OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $2,548,000 Gross Debt ". (B) Deductions to be made from Gross Debt as listed in $2,548,000 the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $109,071,402 (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. Riverside Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $1,500,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $1,500,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $1,048,000 TOTAL $1,048,000 TOTAL GROSS DEBT $2,548,000 (A) (B) (C) Riverside Water and Sewer District of Harnett County, North C olina Schedule of Deductions Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. (F) (G) Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $1,500,000 $0 $0 $1,048,000 $0 $0 $0 $2,548,000 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, in its capacity as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) ZL,Vte-e,6 Marga3 t Regina Wh ler Clerk t� the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Miller introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the tennis and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. PPAB 2057606v2 NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry foul on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001B Bonds maturing on and after June 1, 2013. "2001A Bonds" means the District's $940,000 Water Bonds, Series 2001A. "2001B Bonds" means the District's $254,000 Water Bonds, Series 2001B. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. 2 PPAB 2057606v2 Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $1,500,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the faun set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms of such Refunded Bonds. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. 3 PPAB 2057606v2 Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the teims of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. 4 PPAB 2057606v2 If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and perfolivance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOB s. 5 PPAB 2057606v2 The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057606v2 On motion of Commissioner Miller, and seconded by Commissioner Springle, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2057606v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Riverside Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) t t, m t, t •„,,: PPAB 2057606v2 Marg..'et Regina W v eeler Cler o the Board o Commissioners County of Harnett, North Carolina Attachment 7 Southeast Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057583v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board "), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chaiiinan Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Vice Chairman House introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board ") of the County of Harnett (the "County "), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $1,090,000 aggregate principal amount of the District's Water Bonds, Series 1993 maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain deteiminations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4`h day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. PPAB 2057583v2 B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Vice Chairman House, and seconded by Commissioner Springle, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4`'' day of March, 2013. 2 PPAB 2057583v2 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057583v2 Margar: t Regina W ler Clerk t the Board o Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Vice Chairman House introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $1,482,000 Water Bonds, Series 1993 (the "1993 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June 1, 2013 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. PPAB 2057583v2 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057583v2 Clerk tb the Board o County, of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $1,482,000 Water Bonds, Series 1993 (the "1993 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June 1, 2013 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southeast Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section S. This bond order shall take effect on its adoption The foregoing order was adopted on the 4th day of March, 2013 and is hereby published this 4th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2057583v2 akt f titer Marg. et Regina W -eler Clerk ` o the Board o Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amencded, For the Southeast Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of }tarnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "13 as the governing body of the Southeast Water and Sewer District of Bard t for County, ,North Carolina (the "District "), to make and to file in the office of the Clerk to the Boar-e1 statement ent of North the District pursuant to the Local Government Bond Act, as amended, Do HE ? a statement of that e following is a true statement as shown by the books in my y office relating to the REBY CERTIFY that the consideration any debt incurred or to be incurred in anticipation of bonds ® isr th not n ing into refunding bonds. p other than funding and Sworn to and subscribed before m on the day of the date of said s 1 I Kim • erly Hone County of Harn (Notary Public) M issio+ •ir.s the day of utt, Depu � Finance Officer , North C rolina STATEMENT OF DEBT OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARI ETT COUNTY NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOV)� RNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF S1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETINc-T OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4 DAY OF MARCH, 2013. (D) (E) Gross debt as listed in the attached "Schedule of Gross Debt ". Deductions to be made from Gross Debt as listed in the attached "Schedule of Deductions ". Net Debt being the difference between the Gross Debt (A) and Deductions (B). Appraised Value of property subject to taxation. Percentage that net debt bears to the appraised value of property subject to taxation. $2,590,000 $2,590,000 $0 $1,268,196,564 0% Southeast Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $1,500000 Sewer Bonds ' TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $1,500,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $1,090,000 TOTAL $1,090,000 TOTAL GROSS DEBT $2,590,000 Southeast Water and Sewer District of Harnett County, North Carolina Schedule of Deductions (A) Funding and refunding bonds authorized by orders $1,500000 introduced but not yet adopted. ' (B) Funding and refunding bonds authorized but not issued. $0 (C) Amount held in sinking funds or otherwise for the payment $0 of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (D) (E) (F) (G) Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. $1,090,000 $0 $0 $0 TOTAL $2,590,000 STATE OF NORTH CAROLINA ) COUNTY OF HARNETT ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) CLA Margaret Regina Whe Clerk to e Board of Commissioners County of Harnett, North Carolina -76,&& EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board'), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Vice Chairman House introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond ") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board "), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. PPAB 2057583v2 NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section I. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry foiui on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1993 Bonds" means the District's $1,482,000 Water Bonds, Series 1993. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June 1, 2013. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $1,500,000. 2 PPAB 2057583v2 Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County' s Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section S. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms thereof. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. 3 PPAB 2057583v2 Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of 4 PPAB 2057583v2 any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC") and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. 5 PPAB 2057583v2 Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057583v2 On motion of Vice Chairman House, and seconded by Commissioner Springle, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED 51,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2057583v2 STATE OF NORTH CAROLINA ) COUNTY OF HARNETT ) ) Ss: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Southeast Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 41h day of March, 2013. (DISTRICT SEAL) PPAB 2057583v2 Marga et Regina W :eler Clerk o the Board of Commissioners County of Harnett, North Carolina Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southeast Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Vice Chaimian House, and seconded by Commissioner Springle, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057583v2 Attachment 8 West Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057285v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board'), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * Commissioner Hill introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board') of the County of Harnett (the "County "), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $2,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $1,540,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day of March, 2013, has made the following factual findings in regard to this matter: PPAB 2057285v2 A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom: F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th' day of March, 2013. 2 PPAB 2057285v2 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057285v2 Margare Regina Whee r Clerk tp the Board of mmissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board'), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Hill introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $2,305,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. PPAB 2057285v2 Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the West Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $2,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section S. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2057285v2 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4`'' day of March, 2013. (DISTRICT SEAL) PPAB 2057285v2 e—d2A Clerk the Board a ommissioners Coun j of Harnett, orth Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED S2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $2,305,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"); WHEREAS, the Board of Commissioners (the "Board ") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary') of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, as follows: Section I. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the West Central Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $2,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4th day of March, 2013 and is hereby published this 19"' day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2057285v2 Marga -et Regina W eler Clerk/ o the Board of Commissioners County of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the West Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, DO HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said state Ith'd (Notary Public) Kimberly Honey tt, Deputy,, finance Officer County of Harne , North Ca na My ,co missio it s the [day of ( f STATEMENT OF DEBT OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE LNTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF S2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $3,710,000 Gross Debt ". (B) Deductions to be made from Gross Debt as listed in $3,710,000 the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $311,184,685 (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. West Central Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $2,000,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE (3) Outstanding debt not evidenced by bonds: $2,000,000 AMOUNT $0 TOTAL $0 PURPOSE AMOUNT $0 TOTAL $0 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds $1,710,000 TOTAL $1,710,000 TOTAL GROSS DEBT $3,710,000 West Central Water and Sewer District of Harnett County, North Carolina Schedule of Deductions (A) Funding and refunding bonds authorized by orders introduced but not yet adopted. (B) Funding and refunding bonds authorized but not issued. (C) Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (F) Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. (G) Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. $2,000,000 $0 $0 $1,710,000 $0 $0 $0 TOTAL, $3,710,000 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) AU-aka- /J Margar t Regina W eler Clerk the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board'), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk Commissioner Hill introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond ") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. PPAB 2057285v2 NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: '`Bond' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code'' means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry foiiii on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015. 2 PPAB 2057285v2 `'2004 Bonds" means the District's $2,305,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $2,000,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section S. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the foiin set forth in the Appendix A hereto. 3 PPAB 2057285v2 Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to defease and redeem the Refunded Bonds to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the Willis of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this 4 PPAB 2057285v2 Resolution, whatever the character of the act may be, and may be done and perfoiuied as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. 5 PPAB 2057285v2 Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057285v2 On motion of Commissioner Hill, and seconded by Commissioner Springle, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2057285v2 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, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of West Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4''' day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057285v2 41i. 0,A; -,/,-(-(Ltt Margat t Regina W ler Clerk `t the Board of Commissioners County of Harnett, North Carolina Attachment ' Southwest Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2056676v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chai�man Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Springle introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett (the "County "), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina (the "District "), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $3,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $2,400,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission ") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day of March, 2013, has made the following factual findings in regard to this matter: PPAB 2056676v2 A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner Springle, and seconded by Commissioner Miller, the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4t1' day of March, 2013. 2 PPAB 2056676v2 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 the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2056676v2 Margar: t Regina Whee r Clerk t• the Board of ommissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Springle introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $3,790,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, as follows: Section I. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. PPAB 2056676v2 Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southwest Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section S. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA ", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner Springle, and seconded by Commissioner Hill, the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: 5 NAYS: 0 PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PPAB 2056676v2 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 the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2056676v2 1,6 Clerk to he Board of 1 ommissioners County / f Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District ") has previously issued its $3,790,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds "); WHEREAS, the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County "), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June I , 2015 (the "Refunded Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southwest Water and Sewer District of Harnett County, North Carolina (the "Bonds ") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4th day of March, 2013 and is hereby published this 19th day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2056676v2 Margar t Regina Wh¢e er Clerk the Board of ommissioners Coun of Harnett, North Carolina Sworn Statement of Debt Made pursuant to the Local Government Bond Act, as Amended, For the Southwest Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County "), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina (the "District "), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, DO HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statem Kim. -rly Honey tt, Deputy T i' ance Officer County of Harne , North Caro ina (Notary Public) My lc issi in the I day of N STATEMENT OF DEBT OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159 -55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $7,069,868 Gross Debt ". (B) Deductions to be made from Gross Debt as listed in $6,9 17,368 the attached "Schedule of Deductions ". (C) Net Debt being the difference between the Gross $152,500 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $1,513,531,110 (E) Percentage that net debt bears to the appraised value .0001 % of property subject to taxation. (1) Southwest Water and Sewer District of Harnett County, North Carolina Schedule of Gross Debt (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $3,000,000 Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE AMOUNT $3,000,000 $0 TOTAL $0 (3) Outstanding debt not evidenced by bonds: PURPOSE AMOUNT COPS 2003 $152,500 TOTAL $152,500 (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT General Obligation Water and Sewer Bonds State Bond Loans $2,685,000 1,232,368 TOTAL $3,917,368 TOTAL GROSS DEBT $7,069,868 Southwest Water and Sewer District of Harnett County, North Carolina Schedule of Deductions (A) Funding and refunding bonds authorized by orders $3,000,000 introduced but not yet adopted. (B) Funding and refunding bonds authorized but not issued. $0 (C) Amount held in sinking funds or otherwise for the payment $0 of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be $3,917,368 incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be $0 incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159 -55 of the Local Government Bond Act). (F) (G) Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. $0 $0 TOTAL, $6,917,368 STATE OF NORTH CAROLINA ) COUNTY OF HARNETT ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) ato Margar t Regina Wi eeler Clerk the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Deputy Finance Officer Margaret Regina Wheeler, Clerk * * * Commissioner Springle introduced the following resolution, a. summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order ") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District "), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission ") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County ") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement ") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. PPAB 2056676v2 NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section I. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Bond" means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015. 2 PPAB 2056676v2 "2004 Bonds" means the District's $3,790,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. The District shall issue its Bond in an aggregate principal amount not to exceed $3,000,000. Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County' s Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section S. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. 3 PPAB 2056676v2 Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to defease and redeem the Refunded Bonds to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00 %. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to turn the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond and will not be deemed an infringement of any of the provisions of this 4 PPAB 2056676v2 Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of the Bond shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. 5 PPAB 2056676v2 Section 19. The District agrees to provide the County whatever infouuation that may be necessary for the County to comply with its undertaking with respect with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC") and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2056676v2 On motion of Commissioner Springle, and seconded by Commissioner Miller, the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: 5 Nays: 0 7 PPAB 2056676v2 STATE OF NORTH CAROLINA ) ) COUNTY OF HARNETT ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED 53,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Southwest Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the corporate seal of said District, this the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2056676v2 C Z� Margar- `Regina Whe- 'r Clerk to the Board of . •mmissioners County of Harnett, North Carolina