LOCAL GOVERNMENT COMMISSION AGENDA DECEMBER 4, 2018

Transcription

1 1. PLEDGE OF ALLEGIANCE (PRELIMINARY) RELATED INFORMATION 2. TOAST TO THE FLAG Approximate Per Capita Debt 11/30/18 3. CONFLICT OF INTEREST STATEMENT State: $ 466 Federal: $66, MINUTES FOR APPROVAL November 6, 2018 Page Last request Voted/ Unit Type Purpose Amount Comments Number to Borrow Non-Voted Alamance-Burlington Board of Education Financing Agreement Guaranteed Energy Savings Contract $ 8,265,743 2 N/A Cary, Town of Financing Agreement Municipal Building $ 8,600,000 2 RB $103M Davidson, Town of Financing Agreement Land Acquisition $ 2,550,000 3 GO $14M Johnston County Community College Financing Agreement Guaranteed Energy Savings Contract $ 3,462,958 3 N/A Ocean Isle, Beach, Town of Financing Agreement Land 1,000,000 FA $1.2M Wake, County of General Obligation Refunding $ 125,000,000 4 GO $1.0B Non-voted Goldston Gulf Sanitary District Revenue Water $ 1,292,000 5 RL $228K City of Raleigh Housing Authority Revenue Multi-family Housing (Capital Towers) $ 22,000,000 6 RB $23M N.C. Housing Finance Agency Revenue Mult-family Housing $ 15,235, $3M Cleveland County Water Revolving Loan Water $ 3,833,600 9 FA $5.6M Thomasville, City of Revolving Loan Sewer $ 1,400,000 9 RL $6.4M Winston-Salem, City of Revolving Loan Water $ 20,000,000 9 GO $$122M Catawba County Catawba Valley Medical Center Misc. Action - Amendments to Bond docs. 10 RB $25M Shelby, City of Revolving Loan Misc. Action - loan increase $ 9,337, RL $16.4M Charlotte-Mecklenburg Hospital Revenue Misc. Non-Action - notification NA 10 Wake Forest University Medical Center N.C. Medical Care Commission Misc. Non-Action - notification NA 10 Statement of Economic Interest Evaluations Misc. Action - Folwell, Marshall & Munn NA 10 Presentation by NCMCC - Geary Knapp

2 FINANCING AGREEMENTS PAGE 2 OF 10 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE ALAMANCE-BURLINGTON Installation of energy conservation measures Necessary and expedient Cost estimates and No major No tax increase is Vendor: Trane US Inc. BOARD OF EDUCATION (ECMs) at thirty seven school system facilities to improve quality and guaranteed savings deficiencies. No anticipated. Energy Lender: Banc of America Public Capital Corp. $8,265,743 including schools, administrative offices and reliability of lighting and to reviewed by the defaults noted per savings will service G.S. 160A-20 support facilities. ECMs are primarily lighting reduce the related professional the most recent the debt. Amount: $8,060,925 ($8,265,743 with capitalized Installment Purchase upgrades and water conservation measures. operating costs as well engineering firm of annual report. interest accrued during construction) Guaranteed Energy Savings as to reduce school Locklear, Locklear & Term: Approx. 16 Years; Monthly Payments sized Contract (GESC) Total est. Cost: $10,779,353 system-wide water usage. Jacobs, PLLC. to accommodate the savings realization pattern. Private Placement Total Guaranteed Savings: $10,779,372 The term of the GESC is years. Total est. Savings: $11,424,701 Rate: 3.471% Special Counsel: McGuireWoods LLP Lender's Counsel: Provided by Bank of America TOWN OF CARY Construction of Fire Station #9 located at 1427 Necessary and expedient Bid is in hand for No deficiencies or No tax increase is Bank: ST Institutional & Government, Inc. $8,600,000 Walnut Street and the purchase of two to replace a prior station the fire station and defaults noted. required. Debt Amount $ 8,600,000 Fire Station/ Trucks replacement aerial ladder trucks. and two trucks that have purchase orders service will be paid Approval Rate: 3.12% G.S. 160A-20 reached the end of their are in hand for the from revenues to the Term (years): 15 Financing Agreement useful lives. fire trucks. General Fund. Market Rate: 3.00% Private Placement Expected Sources and Uses of Funds: Payment Annual principal and semi-annual interest Sources: Bank Loan $ 8,600,000 Bank placement will not be rated. Current G.O. ratings: 2017A GO Proceeds $ 1,004,944 S&P: AAA Cash $ 1,170,056 Moody's: Aaa Total Sources $ 10,775,000 Fitch AAA Uses: Project Funds: FINANCING TEAM Fire Station $ 7,900,000 Bond Counsel: Womble Bond Dickinson (US) LLP Ladder Trucks. $ 2,750,000 Financial Advisor: Davenport & Company LLC Cost of Issuance $ 125,000 Total Uses $ 10,775,000 Installment purchase contract is more timely than issue of G.O. Bonds. Debt Ratios-Excluding Enterprise Funds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Municipal Buildings 163,930 $ 8,600,000 11/15/2018 $ 16,050,000 $ 26,414,089,961 $ 176,790,000 $ % 0.76% $ 1,176 $ 1,229 Wake Co. $ 2,274

3 FINANCING AGREEMENTS PAGE 3 OF 10 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE TOWN OF DAVIDSON Purchase of land and buildings located at 251 Necessary and Appraisal for No deficiencies or No tax increase is Bank: Sterling National Bank $2,550,000 South Street in Davidson. expedient to plan for property in hand. defaults noted. required. Debt Amount $ 2,550,000 Land Purchase future administrative service will be paid Approval Rate: 3.89% G.S. 160A-20 office expansion, public from revenues to the Term (years): 20 Financing Agreement meeting space and General Fund. Market Rate: 3.50% Private Placement Expected Sources and Uses of Funds: recreational facilities. Payment Annual principal and semi-annual interest Sources: Bank placement will not be rated. Current G.O. ratings: Bank Loan $ 2,550,000 S&P: N/A Total Sources $ 2,550,000 Moody's: N/A Uses: Project Fund $ 2,550,000 FINANCING TEAM Total Uses $ 2,550,000 Financial Advisor: First Tryon Advisors Installment purchase contract is more timely than issue of G.O. Bonds. Debt Ratios-Excluding Enterprise Funds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Land Acquisition 13,228 $ 2,550,000 10/23/2018 $ 15,000,000 $ 2,032,268,210 $ 3,897,139 $ % 1.06% $ 1,429 $ 1,621 Mecklenburg $ 1,742 JOHNSTON COUNTY Installation of energy conservation measures Necessary and Cost estimates and No major No tax increase is Vendor: Piedmont Service Group COMMUNITY COLLEGE (ECMs) at the College's facilities to expedient to help the guaranteed savings deficiencies. No anticipated. Energy Lender: The initial direct lender will be the vendor, $3,462,958 upgrade/replace outdated and malfunctioning College become more reviewed by the defaults noted per savings will service Piedmont Service Group, with an immediate G.S. 160A-20; G.S HVAC systems, controls, lighting and various energy efficient and to professional the most recent the debt. assignment for the term of the loan to Installment Purchase miscellaneous other facilities. replace several engineering firm of annual report. Sterling National Bank, N.A. Guaranteed Energy Savings outdated systems that Stanford White. Amount: $3,331,215 ($3,462,658 with capitalized Contract (GESC) Total est. Cost: $ 5,332,996 are inadequate in its interest accrued during construction) Private Placement Total Guaranteed Savings: $ 5,336,723 facilities. Term: 17 Years; Monthly Payments sized to accommodate Total est. Savings: $ 5,833,100 the savings realization pattern. The term of the GESC is 16 years. Rate: 4.250% Lender's Counsel: Womble Bond Dickinson (US), LLP TOWN OF OCEAN ISLE This project consists of the purchase of a tract Necessary and expedient Certified appraisal No major deficiencies. No tax increase is Bank: First Bank BEACH of property as use for Town parking/open because the Town wishes justifies purchase No defaults noted. anticipated. General Approval Rate: 3.390% Purchase of Land space. to preserve open space and price. Fund revenues will Term: 10 years $1,000,000 property necessary for provide for debt service. Market Rate: 3.40% G.S. 160A-20 future parking and Payment: Annually Installment Purchase Contract accessibility by the Town. S&P: N/A Moody's: N/A Installment purchase contract is more timely than issue of G.O. Bonds Debt Ratios-Excluding Enterprise Funds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Land 612 $ 1,000,000 9/11/2018 $ - $1,702,663,728 4,896,404 $ % 0.35% $ 8,001 $ 9,635 Brunswick Co. $ 643

4 GENERAL OBLIGATION REFUNDING BONDS LOCAL GOVERNMENT COMMISSION PAGE 4 OF 10 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY WAKE COUNTY All or portion of bonds to be refunded: Necessary and expedient Amount is adequate, No major deficiencies. A tax increase is not Structure: Moody's: Aaa $125,000,000 $124,000,000 General Obligation to provide savings on the with other available No defaults noted. anticipated. Current Refunding. Net present value S&P: AAA General Obligation Refunding Public Improvement Bonds, Series 2009, sold outstanding issue. funds of the County, savings of $9,158,892 for the 2009 Bonds. Fitch: AAA Bonds April 1, 2009 at a TIC of % and a to defease debt. G.S present average interest cost of %. Net present value savings at 7.39% of the refunded bonds. The refunding bonds will be structured with no extensions of maturities (final maturity March 1, 2025) and with approximately level annual gross savings of $1,648,734. Competitive Sale: January 15, 2019 APPROVALS Amount not to exceed: $125,000,000 FINANCING TEAM Bond Counsel: Womble Bond Dickinson (US) LLP Financial Advisor: Waters and Company, LLC Escrow Agent: U.S. Bank, N.A. Debt Ratios-Excluding Enterprise Funds To Property Per Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Capita Purpose Estimated Census Amount Election Date & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Refunding 1,052,120 $ 125,000,000 N/A $ 1,214,350,000 $ 147,586,014,353 $ 1,725,718,680 $ % 1.99% $ 2,794 $ 2,795

5 REVENUE BONDS PAGE 5 OF 10 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION GOLDSTON GULF SANITARY DISTRICT Necessary and Bids in hand. The projection of net No major USDA commitment to Term: RBAN: 18 months Water expedient because the revenues prepared by deficiencies. No purchase the bonds RB: 40 years $1,292,000 existing pumps are the unit indicates that defaults noted. upon substantial Interest Rate: Fixed Revenue Bond past their useful life future revenues will be completion of the Structure: G.S. 159; Article 5 span and do not have adequate to cover the project. RBAN: Interest due at maturity. the capacity to fill the cost of operations and RB: Approximately level debt service The proposed project is for a new (repurposed) elevated proposed tank. debt service. water storage tank to replace the old stand pipe, and a new Water: $52.00 APPROVALS booster pump station will be necessary to optimize the Issue Amount Revenue Bond: $1,292,000 proposed elevated storage tank. The project area consists Issue Amount Revenue BAN: $1,292,000 of the land (to be purchased) required to install the new Final Maturity: (repurposed) elevated water storage tank, 150 LF of 20 foot RBAN: No later than 6/25/2020 easement for a 10-inch water line extension, the existing RB: 2060 or 40 years after the maturity of the RBAN tank site, the existing water plant site, and the proposed booster pump Interest Rate: RBAN: 3.79% USDA Loan $ 1,292,000 RB: $1,003, % USDA Grant $ 519,000 RB: $289, % Available Cash $ 30,000 FINANCING TEAM $ 1,841,000 Bond Counsel: Parker Poe Adams & Bernstein, LLP Revenue BAN: BB&T Revenue Bond: USDA Rural Development Registrar: Chairman

6 REVENUE BONDS PAGE 6 OF 10 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION CITY OF RALEIGH HOUSING AUTHORITY The Raleigh City The developer has The developer has provided No major Public Offering Term (Construction Phase): Approx. 24 months MULTIFAMILY HOUSING REVENUE BONDS, Council, and the provided an Appraisal, a 15-year cash flow projec- deficiencies. (2018A Bonds) Term (Permanent Phase): Approximately 18 years Series 2018A and Series 2018B Raleigh Housing Phase I Environmental tions that show debt ser- No defaults. Direct Purchase Interest Rate : 10 year swap rate 3.00% plus bond rate.65% (Capital Towers) Authority Board have Survey, a Guaranteed vice coverage for the (2018B Bonds) plus spread 1.05%. found that the project Maximum Price contract bonds will be at least G.S ; ; is necessary to provide and a Market Study which 1.15X. The Purchaser of the Indicative rates would be 3.78% and 4.70% an adequate supply of supports the valuations 2018B Bond will not Not to exceed $22,000,000 in aggregate principal amount. housing for low and thereof. transfer the bond The proceeds of the bonds will be used to provide a loan to moderate income except in Structure: interest-only during construction followed by 35-year Capital Towers III, LLC, a North Carolina limited liability residents of the City of The Authority has found The Lender has performed accordance with amortization for the permanent phase (2018A); annual principal company, for the acquisition, renovation, and equipping of Raleigh. that the debt to be its own credit analysis and federal and state and interest payments (2018B) two multifamily residential rental facilities known as Capital incurred in connection has set a minimum DSCR of securities laws. Towers Apartments, targeted for low-income senior tenants The development will with the project is 1.15%. APPROVALS in Raleigh, NC, consisting of 297 units of studio and 1 be dedicated to adequate but not Sale of the bonds Amount: Not to exceed $22,000,000 bedroom apartments located on approx. 6.3 acres. The households with excessive and the fees will not conflict with Final Maturity: Not to exceed December 31, 2055 facilities will be rehabilitated in accordance with the incomes at or below are reasonable. In the sale of any other Interest Rate: Tax-exempt maximum 12.0% specifications provided in the application for low-income 60% of the area addition, the Rental revenue bonds. housing tax credits (LIHTC) as approved by the NC median income. Investment section of the FINANCING TEAM Housing Finance Agency (NCHFA). NCHFA has reviewed this The NCHFA commissioned Bond Counsel: McGuireWoods LLP information and has found a market analysis which Authority's Counsel: The Francis Law Firm Sources of Funds it to be reasonable. concluded sufficient support Borrower: Capital Towers III, LLC Fannie Mae MTEB $ 15,100,000 for the introduction and Borrower's Counsel: Blanco Tackabery & Matamoros, P.A. Federal LIHTC Proceeds 11,159,295 absorption of affordable rental Developer: DHIC, Inc. Deferred Developer's Fee 882,572 units within the market area Construction Lender: Wells Fargo Bank, N.A. NCHFA Loan $ 2,000,000 at the proposed affordable Construction Lender's Counsel: Womble Bond Dickinson Seller's Notes - Acquisition $ 10,500,000 rental rates. Permanent Lender: Prudential Multifamily Mortgage, LLC Seller's Note 2- Reserves $ 223,124 Permanent Lender's Counsel: Krooth & Altman LLP City of Raleigh Loan 5,600,000 Fannie Mae's Counsel: DLA Piper LLP Total Sources $ 45,464, A Underwriter: Stifel, Nicolaus & Company, Incorporated Underwriter's Counsel: Tiber Hudson, LLC Uses of Funds 2018B Purchaser: Capital Towers, Inc., or an affiliated entity Total Acquisition $ 10,500, B Purchaser's Counsel: Morningstar Law Group Improvements 27,613,014 Trustee: The Bank of New York Mellon Trust Company, N.A. Cost of Issuance and Financing Fees 3,297,832 Tax Credit Investor: Wincopin Circle LLLP Fees, Reserves and Soft Costs 4,054,145 LIHTC Investor's Counsel: Gallagher Evelius & Jones LLP Total Uses $ 45,464,991

7 NORTH CAROLINA HOUSING FINANCE AGENCY DECEMBER 4, 2019 PAGE 7 OF 10 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION NORTH CAROLINA HOUSING FINANCE The NCHFA has The developer has After the projects No deficiencies. Public sale of the Term and Structure: Total 36 month maturity (maximum). AGENCY (NCHFA) - $15,235,000 found that the provided appraisals, are placed in No defaults Series 2019 Bonds is Bonds may be redeemed in part as each project Multi-family Housing Revenue Bonds, projects (and the rehabilitation cost service and noted. currently expected to is completed (expected mos.). Long term financing Series 2019 rehabilitation estimates, Phase I rehabilitation is take place the week provided by USDA-RD. thereof) are environmental studies, complete, the of Jan. 8 and will The proceeds of the bonds will be used to necessary to and market studies for bonds will be not conflict with any Interest Rate: Series Fixed - expected 2.65% finance the acquisition and substantial provide safe, each project which redeemed with the other sales. The bonds rehabilitation of 9 existing multifamily/senior sanitary, affordable support the valuations proceeds of loans are expected to be Ratings: Series AA+ - Standard and Poor's housing properties located primarily in rural housing thereof. The NCHFA provided by the rated AA+ by S&P, cities in N.C. including Nashville, Roanoke opportunities for Rental Investment USDA RD Section and sold in $5,000 Rapids, Taylorsville, Laurinburg, Tabor City, low- to Section has reviewed the 538 loans. denominations. Rich Square, Oxford and Norlina (2). Each moderate-income above and the adequacy APPROVALS project will be owned by a limited partnership residents. and cost of the proposed Amount: Not to exceed $15,235,000 created for the project. 99.9% of the ownership renovations and found it Final Maturity: Not beyond 1/1/2022. interest of each partner- ship will be owned by The projects are to be reasonable. Maximum Fixed Rate: Not to Exceed 4% the Tax Credit Investor. The Weaver Investment subject to tax Company, a multifamily developer located in requirements FINANCING TEAM Greensboro, NC, will act as Developer. restricting all the Bond Counsel: Womble Bond Dickinson (US) LLP rental units to The aggregate principal amount of the bonds is residents with Underwriter (Series A): Red Capital Markets, LLC expected not to exceed $15,235,000 and will incomes restricted Underwriter Counsel: Tiber Hudson, LLC mature no later than Jan. 1, The bonds to 60% of the area are expected to be sold to Red Capital Markets, median income. Tax Credit Investor: Community Equity Fund XXIV LP, LLC for public offering to investors at an interest provided by Community Affordable Housing Equity Corp. rate to be determined at the time of sale based ("CAHEC") on market conditions. Tax Credit Investor Counsel: Miles & Stockbridge P.C. It is currently expected that all bonds would be Developer: Weaver Investment Company called at the time of the first remarketing or within a few months thereof as the projects Borrowers: A separate limited partnership consisting of an are completed. an affiliate of the developer and CAHEC has been established for each of the nine properties. Each ownership entity has also received loan Borrower Counsel: Daniel Sroka, P.C. commitments from USDA-Rural Development for Borrower Bond Counsel: McGuireWoods LLP the assumption of existing loans and for new loans to be made upon completion of the Permanent Lender: USDA Rural Development rehabilitation of the related project and its Lender's Counsel: Dinsmore & Shohl LLP having been placed in service. Each project will be eligible for low income housing tax Financial Advisor: cfx Incorporated credits under Section 42 of the code. A total of 312 housing units will be provided among the Trustee: The Bank of New York Mellon Trust Co., N.A. nine properties. 308 units will receive Section 521 Trustee Counsel: Moore & Van Allen LLP rental assistance from USDA.

8 NORTH CAROLINA HOUSING FINANCE AGENCY DECEMBER 4, 2019 PAGE 8 OF 10 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION CONTINUED Initial Sources of Funds Housing Revenue Bonds Series 2019A Final Sources of Funds Assumption Existing RD 515 Loans $ 15,235,000 Federal LIHTC Equity $ 7,733,199 New RD 538 Loans 8,970,700 USDA Rural Development 515 Loan 8,970,700 Initial Federal LIHTC Equity 9,450,757 USDA Rural Development 538 Loan 9,450,757 Deferred Developer Fees 7,733,199 Deferred Developer Fee 189,205 Partner Equity 189,205 Replacement Reserves 1,061,090 Partial Use of Existing Replacement Reserves 900 General Partner Equity 900 1,061,090 $ 27,405,851 $ 42,640,851 Uses of Funds: Acquisition Rehabilitation/Renovation Costs $ 6,895,476 Financing Fees and Expenses 12,462,220 Developer Fee 969,361 Other Development Costs 2,509,833 Payment of Bond Principal $ 4,568,961 15,235,000 42,640,851

9 REVOLVING LOAN LOCAL GOVERNMENT COMMISSION PAGE 9 OF 10 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT FEASIBLITY/ TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY CLEVELAND COUNTY WATER Construction of a new 750,000-gallon water storage tank Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina N/A Water and replacement of 6" and 8" waterlines with 14,965 LF improve system distribution provided by McGill defaults noted. revenues prepared by Term: 20 years $3,833,600 of 12" waterline and 100 LF of 6" waterline, valves, vaults pressures, water quality and Associates, PA. the unit indicates that The rate, as established under G.S. 159G-22 and associated appurtenances. This project involves the provide the storage required future revenues will be this program for the respective Revolving Loan Lattimore area. to meet system demands, adequate to cover the loan, State or federal, is not to fire suppression and improve cost of operations and exceed 4%. system reliability. debt service. Water: $29.29 CITY OF THOMASVILLE This project includes 5,200 linear feet (LF) of heavy Necessary and expedient to Cost estimates No major deficiencies The projection of net Loan from State of North Carolina N/A Sewer cleaning, 5, 500 linear feet (LF) of cured in place pipe to satisfy the terms of the provided by Alley, No defaults noted. revenues prepared by Term: 20 years $1,400,000 (CIPP) sanitary sewer rehabilitation, 3,000 linear feet (LF) Consent Decree, will benefit Williams, Carmen & the unit indicates that The rate, as established under G.S. 159G-22 of point repairs, and rehabilitation/resealing of Hank's Branch and the King, Inc. future revenues will be this program for the respective Revolving Loan approximately 45 sanitary sewer manholes receiving watercourses by adequate to cover the loan, State or federal, is not to realizing a reduction in cost of operations and exceed 4%. sanitary sewer overflows debt service. (SSOs) within the affected Water: $39.94 area, and will increase the Sewer: $48.95 operational efficiency of downstream pump stations and possibly forestall facility upgrades necessitated by higher than intended return flows. CITY OF WINSTON-SALEM Rehabilitation of the City's Nielson Water Treatment Plant Necessary and expedient Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina N/A Water (WTP). The project includes, for the Raw-Water facilities, because the plant was provided by Black defaults noted. revenues prepared by Term: 20 years $20,000,000 dewater and dredge raw-water reservoirs,replace raw-water originally built in 1961 and & Veatch. the unit indicates that The rate, as established under G.S. 159G-22 ventura-type flowmeter with mag meter, and replace all was expanded in 1982 and future revenues will be this program for the respective Revolving Loan instrumentation panels; for the Filtration Facilities replace Much of the equipment adequate to cover the loan, State or federal, is not to raw-water, basin drain and filter valves and remove various and components are past cost of operations and exceed 4%. hydraulic and pneumatic valves; for the Chemical-Feed & their expected life. debt service. Contact facilities install new bulk and day storage tanks, Water: $33.37 feed pumps, containment spaces, coatings, sumps and Sewer: $41.21 sump pumps; for the Finished-Water Transfer facilities refurbish three (3) 8-MGD finished water pumps by replacing their existing motors and engine-drives; and for the Plant Process-Wastewater facilities remove existing pumps & electrical equipment in Waste Pumping Station. In general the project will include improvements to the plant hydraulics, process equipment, chemical feed and storage systems, operations building, wash water and residuals management facilities, power distribution systems, control systems and general site work.

10 MISCELLANEOUS LOCAL GOVERNMENT COMMISSION PAGE 10 OF 10 MISCELLANEOUS: (ACTION ITEMS): Catawba County (Catawba Valley Med. Center) Catawba County ("County") has issued its Hospital Refunding Revenue Bonds, Series 2016A ("Bonds") related to Catawba Valley Medical Center ("CVMC") to BB&T Community G.S. 159; Article 5 Holdings Co. ("BB&T"). The current interest rate mode of the Bonds is variable interest calculated as [(68% of LIBOR) bps]. This mode gave several options to the Bank at the Amendments to Certain Bond end of 10 years including a) putting the unpaid balance, b) renegotiating the variable rate structure or c) renewing the current structure for the remainder of the term. Additionally, the Rates for Hospital Refunding Local Government Commission ("LGC") required CVMC to purchase a rate cap of 8%, which adds to the cost. In the current environment of rising interest rates, the Bank and CVMC Series 2016A in the amount of have agreed to a Conversion to a fixed interest rate which will abrogate any other rate modes until the original final maturity date of October 1, This will be done by amendment $24,303,754 Direct Bank of the First Supplemental Trust Agreement and issuance of Bond R-3. While currently more expensive, this will shelter CVMC from escalating rates, more expensive hedges and the Placement uncertainty of future Bank-initiated rate/term adjustments. The final rate will be locked no earlier that 2 days prior to closing and the currently indicated rate is 4.24%. The not-to-exceed rate to be approved herein is 6%. The Conversion financing team subject to LGC approval is: Financial Advisor - Efficient Capital Corp.; Bond Counsel - Nexsen Pruet, PLLC and Bank Counsel - Moore & Van Allen PLLC. The Staff of the Local Government Commission has reviewed the transaction and recommends approval. City of Shelby The City is requesting approval for an increase of additional funds on a State Revolving Loan. The loan is for upgrades to the Composting Facility at the Wastewater Treatment Plant (WWTP). The original loan was approved by the LGC on September 1, 2015 for $3,947,952 and July 12, 2016 for $10,500,000. The City is requesting an additional increase of $9,337,400 for a total loan of $19,837,400. The increase is necessary due to modifications to the contract. In 2016/2017 HDR Engineering Inc., designed the recommended facility with the recommendation to transition from Composite Facility to Anaerobic Digestion, which amended the original loan amount approved on September 1, The new loan amount was awarded on July 12, The contract was bid in late 2017 but ultimately not awarded due to it exceeding the project budget. Since the City now has updated bids (11/1/2018) they know exactly how much money it will cost to complete the project and therefore requesting that amount so that they can be able to move forward with the project this time. Charlotte-Mecklenburg Hospital Authority (Atrium Health) (NON-ACTION INFORMATION ITEM): Charlotte-Mecklenburg Hospital Authority (Atrium Health) plans to be on the January agenda. Atrium Health plans to request the refinancing of its Series 2011A Health Care Revenue Bonds with a forward starting swap to lock-in net present value savings, currently estimated at $28 million (22.4% of the refunded bonds). Wake Forest University Baptist Medical Center Wake Forest University Baptist Medical Center plans to be on the January agenda. The Center plans a financing request of approximately $314,420,000 for expansion and refunding purposes. Statement of Economic Interest Evaluations (SEI) 2018 Statement of Economic Interest (SEI) evaluation letters issued by the State Board of Elections and Ethics Enforcement for these Commission members: Dale R. Folwell, Elaine F. Marshall, and Edward C. Munn. These evaluation letters are being provided for Commission members' review and for recording in the meeting minutes pursuant to the requirements of the State Government Ethics Act. Members are encouraged to review the SEI evaluations to inform and remind them of the identified actual or potential conflicts of interest.