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Home My WebLink About2015/06/15 RESOLUTION AUTHORIZING AND APPROVING THE DELIVERY OA N INSTALLMENT FINANCING AGREEMENT BY COATS GROVE FIRE & RESCUE INC AND THE TAX EXEMPT LOAN RELATED THERETOEXTRACT FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board") was held at the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, at 7:00 p.m. on June 15, 2015 (the "Meeting"), after proper notice, and was called to order by Chairman Jim Burgin, and upon the roll being called, the following members of the Board answered present: Jim Burgin, Chairman Gordon Springle, Vice Chairman Abe Elmore, Commissioner Barbara McKoy, Commissioner Joe Miller, Commissioner The following members of the Board were absent: N/A Also present: Joseph Jeffries, County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Finance Officer Margaret Regina Wheeler, Clerk *xx The Chairman of the Board of Commissioners (the "Board") for the County of Harnett, North Carolina (the "County") stated that the Board has been requested by the Coats Grove Fire & Rescue, Inc. ("CGFR") to approve an installment financing agreement between First -Citizens Bank & Trust Company and CGFR (the "Agreement"). CGFR will use the proceeds of the Agreement to finance the acquisition of a fire truck and certain related equipment (the "Equipment") and, if applicable, to pay certain expenses incurred in connection with the delivery of the Agreement. The Chairman then stated that a notice of public hearing by the Board regarding the Equipment and the execution and delivery of the Agreement had been published on June 3, 2015 in The Daily Record. Chairman Burgin declared the public hearing on the Equipment and the execution and delivery of the Agreement to be open. At approximately 7:25 p.m., the Chairman announced that the Board would hear anyone who wished to be heard on the advisability of the financing of the Equipment and the proposed execution and delivery of the Agreement, and that a representative of CGFR was available and prepared to discuss the details concerning such matters. No one spoke. After the Board had heard all persons who requested to be heard, the Chairman declared the public hearing closed. Commissioner Elmore then introduced the following resolution, the title of which was read and copies of which had been previously distributed to each Commissioner: RESOLUTION AUTHORIZING AND APPROVING THE DELIVERY OF AN INSTALLMENT FINANCING AGREEMENT BY COATS GROVE FIRE & RESCUE, INC. AND THE TAX- EXEMPT LOAN RELATED THERETO WHEREAS, Coats Grove Fire & Rescue, Inc. (the "CGFR") and the County of Harnett, North Carolina (the "County") have heretofore entered into an agreement in March 1992 whereby CGFR has agreed to provide the County fire protection services; and PPAB 28265270 WHEREAS, CGFR wishes to finance the acquisition of a fire truck and certain related equipment (the "Equipment") and, if applicable, to pay certain expenses incurred in connection with the delivery of the Agreement (as defined below); and WHEREAS, CGFR and First -Citizens Bank & Trust Company intend to enter into an installment financing agreement (the "Agreement") whereby First -Citizens Bank & Trust Company will advance to CGFR funds for the acquisition of the Equipment and, if applicable, such related costs; and WHEREAS, the interest component of the repayment obligations under the Agreement are intended to be excludable from the gross income of the recipients thereof, and WHEREAS, pursuant to the Internal Revenue Code of 1986, as amended (the "Code"), the execution and delivery of the Agreement must be approved, after a public hearing required by Sections 150(e)(3) and 147(f) of the Code, by the governmental unit having jurisdiction over the area in which the Equipment is located; and WHEREAS, the Agreement does not constitute a debt of the State of North Carolina or any political subdivision or any agency thereof, including the County, or a pledge of the faith and credit of the State of North Carolina or any political subdivision or any such agency, including the County, but is payable solely from the revenues and other funds provided for by CGFR in the Agreement; and WHEREAS, because no revenues or taxes of the County are legally pledged to the repayment obligations under the Agreement, the staff of the County has made no financial analysis of the Agreement or the Equipment to be financed thereby; and WHEREAS, the Board of Commissioners of the County (the "Board"), pursuant to public notice duly given, has held a public hearing on the advisability of the delivery of the Agreement to finance the Equipment and has considered the comments of all persons who requested to be heard; and WHEREAS, the Board desires to approve the delivery of the Agreement for the purpose of financing the Equipment; NOW THEREFORE, BE IT RESOLVED by the Board as follows: I. The Board has held the public hearing and taken the actions set forth herein in order to satisfy Sections 150(e)(3) and 147(f) of the Code. 2. The delivery of the Agreement in an aggregate principal amount not exceeding $400,000 to finance the Equipment and, if applicable, certain related costs is hereby approved. 3. The Clerk to the Board is hereby authorized and directed to provide a certified copy of this resolution to CGFR and First -Citizens Bank & Trust Company. 4. THE AGREEMENT DOES NOT CONSTITUTE A DEBT OF THE STA'T'E OF NORTH CAROLINA OR ANY POLITICAL SUBDIVISION OR ANY AGENCY THEREOF, INCLUDING THE COUNTY, OR A PLEDGE OF THE FAITH AND CREDIT OF THE STATE OF NORTH CAROLINA OR ANY POLITICAL SUBDIVISION OR ANY SUCH AGENCY, INCLUDING THF. COUNTY. 5. This resolution is effective on its adoption. PPAB 2826527v1 STATE OF NOR'T'H CAROLINA SS: COUNTY OF HARNE'IT I, Margare[ Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a Resolution entitled, "RESOLUTION AUTHORIZING AND APPROVING THE DELIVERY OF AN INSTALLMENT FINANCING AGREEMENT BY COATS GROVE FIRE & RESCUE, WC. AND THE TAX-EXEMPT LOAN RELATED THERETO" adopted by the Board of Commissioners of the County of Harnett, North Carolina, in regular session convened on the 15' day of June, 2015. WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the 151h day of June, 2015. O F......11/&iSs :IO'�rt gyp% (SEAL) _ :.;1A 1111111111 PPAB 2826527v Margar t Regina W} ler Clerkt the Board commissioners